BETHESDA, MD - Berkeley Point Capital LLC recently provided $74,750,000 in first mortgage proceeds for the refinance of The Woodner, a 1,072-unit, class-B multifamily community located in the Mount Pleasant neighborhood of Washington, DC. The site is comprised of two 13-story buildings connected by a lobby. Tower A represents the 3636 16th Street apartment building and Tower B represents the 3640 16th Street apartment building.
Given that each tower is owned by separate but related entities, the transaction was underwritten as two separate loans – $33,670,000 for Tower A and $41,080,000 for Tower B. Structured under the Fannie Mae Delegated Underwriting and Servicing (DUS®) program, the two loans are cross-defaulted and cross-collateralized, each with a 10-year term, 9.5-year yield maintenance, and are full-term interest only. The loan proceeds will be used to pay off six existing coterminous loans (three loans for each parcel) that mature in June 2013 and to provide additional funds for upgrades to the property’s art deco-styled common areas. Berkeley Point Capital Director Rob Cantizano, of its Bethesda, MD office, led the transaction for the Berkeley Point team.
“We are pleased to have worked closely with Fannie Mae and the sponsor to structure and close both of these loans simultaneously while providing the desired terms,” said Jim McDevitt, President of Berkeley Point Capital LLC. “The property has been owned and managed by the same family for over 60 years and is, by unit count, one of the largest apartment communities in Washington, D.C.”
Built in 1952 by current ownership, the subject was originally operated as both a hotel and rental apartments. The 1968 riots isolated the hotel from downtown Washington and as a result the hotel was closed and the entire building converted to rental apartments. The unique property includes retail operations, including restaurant, grocery store, video rental, dry cleaner and a variety of other shops, and is served by several bus routes and major access roads.
The Woodner also participates in affordable housing initiatives, with approximately 7% of the tenants utilizing Section 8 vouchers. Additionally, the community is subject to rent control provisions contained within the Rental Housing Act of 1985 and the Rental Control Reform Amendment of 2006, which determine the maximum amount of annual net rent increase.
about berkeley point capital
Berkeley Point Capital LLC is one of the nation’s leading multifamily capital solutions providers. The firm boasts a 30+ year history and a servicing portfolio of over $29 billion representing in excess of 2,100 loans in 45 states and
the District of Columbia. This extensive and diverse national platform allows us to provide our clients with superior execution in every market in the country.
Berkeley Point is owned by entities affiliated with Ranieri Real Estate Partners LP and WL Ross & Co. LLC. As a part of its multifamily expertise, the firm offers the full complement of Fannie Mae, Freddie Mac, and FHA products.
Focusing on a three-pronged strategy of exceptional people, unique multifamily capital solutions and superior technology, our team of nearly 200 people located in nine offices across the nation provides our customers a competitive advantage through speed, creativity, ease of interface and certainty of execution.
For more information on Berkeley Point Capital, please visit our website at www.berkpoint.com