BALTIMORE, MD – M&T Realty Capital Corporation announced today that it has closed a $23,500,000 Fannie Mae Near-Stabilization loan for the permanent financing of Jefferson Somerset Park Apartments — a 150-unit Class-A multifamily property located in Leesburg, VA — on behalf of Jefferson Apartment Group.
Jefferson Somerset Park Apartments offers one-, two-, and three-bedroom apartments, as well as, two- and three-bedroom townhomes for rent. Unit amenities include stainless steel appliances, built-in pantries, private balconies or patios, and full-size in-unit washers and dryers. Property amenities include a fitness center, an outdoor entertainment living area with grilling area, a firepit with lounge seating, and a business center.
The 7-year, fixed-rate loan is structured with five years of interest-only payments, followed by a 30-year amortization. The transaction was led by Managing Directors Matthew Hodson and Debra Goldstein of M&T Realty Capital Corporation’s Falls Church, VA and Washington, DC offices, respectively, in collaboration with Commercial Senior Relationship Manager Doug Cochrane of M&T Bank’s Washington, DC office.
“Fannie Mae’s Near-Stabilization program is ideal for recently constructed projects, as it offers borrowers the ability to take advantage of the current low interest-rate environment with occupancy rates lower than those typically required at rate lock,” adds Hodson. “Although Somerset Park was at 77% occupancy at the time of rate lock, we were able to show that the property will be fully leased within a few months of closing, based on Jefferson Apartment Group’s prior experience in leasing up multifamily properties and the strong demand for rental housing in the Northern Virginia market.”
About Jefferson Apartment Group: Jefferson Apartment Group is a full-service real estate firm specializing in multifamily and mixed-use real estate investments through acquisition, development, construction, and property management services. JAG focuses on urban, transit-oriented assets located in high barrier-to-entry markets on the East Coast. The firm is committed to creating and managing communities that are high quality, innovative and environmentally responsible. More information is available at www.jeffersonapartmentgroup.com
About M&T Realty Capital Corporation: M&T Realty Capital Corporation is a wholly-owned subsidiary of M&T Bank—one of the 20 largest US-headquartered commercial bank holding companies. As a full-service mortgage banking company, we specialize in providing competitive financing nationwide for commercial real estate. We are a fully accredited Fannie Mae DUS® lender, a Freddie Mac Optigo® lender, an approved FHA/HUD MAP and LEAN lender, and also offer life insurance company and CMBS financing through correspondent relationships. In 2019, we originated $5.2 billion in loans, and currently service a $21 billion portfolio.