Posts

PRC Arranges $96.2 Million to Redevelop Two Apartments Properties Near Boston University & Harvard University

Bethesda, MD, June 15, 2021

Phillips Realty Capital (PRC) announced that the firm structured loans totaling $96,200,000 for its client, The Hamilton Company, to refinance and completely renovate two apartment properties located within close proximity to Boston University and Harvard University. PRC Managing Director Adam Bieber led the capital raise along with Harmon Handorf, with underwriting support from Emily Beeler and Bill Wrench.

Voya Commercial Mortgage LLC, a PRC correspondent lender, provided funding for the 187-unit Atrium on Commonwealth, located a quarter mile from Boston University. Originally built as a Packard Motors assembly plant and dealership in the early 1900s, the building was renovated in the late 1970s into a rental apartment building, with indoor parking, courtyard with swimming pool, and retail space. The current renovation consists of replacing the entire façade, structural repairs in the two garage levels, a new roof and window systems, pool deck repairs, and apartment renovations including high end kitchen and bathroom upgrades, ceramic tile walls and floors in bathrooms, and hardwood flooring throughout living areas.

Hingham Institution for Savings provided funds secured by the 92-unit Longfellow Apartments located just off Harvard Yard in Cambridge, Massachusetts. Originally built in 1917 Longfellow offers a variety of studio, one-, two- and three-bedroom floor plans. Comprehensive renovation plans include restoring historic decorative façade elements, updating major systems, and refreshing all unit interiors. Unit upgrades will be commensurate with finishes in other recently completed Hamilton projects including semi-custom cabinetry, granite or marble countertops, stainless steel appliances, high end plumbing fixtures, ceramic bathroom tiles and new engineered flooring throughout living areas. Surrounded by abundant shops, restaurants and entertainment options, Longfellow Apartments offers a WalkScore of 98 (Walker’s Paradise) and a TransitScore of 82 (Excellent Transit).

“The Atrium and Longfellow Apartments represent two important legacy assets within the Hamilton portfolio. These loans will enable us to capture the low interest rate environment and allow us to position these assets for the next generation and chapter of our company,” said Jameson Brown, Co-CEO of The Hamilton Company. “The team at Phillips provided sound advice and tailored the structure of these loans to mesh well with our firm’s strategy and outlook. We want to extend our gratitude to our lenders, lawyers, and everyone who played a key role in facilitating and closing these transactions.”

“We are appreciative of the opportunity to represent The Hamilton Company – truly a blue-chip organization. The company’s reputation as a market leader, as well as the assets’ prominence within their submarkets, translated to substantial interest and competition within the lending community,” said Bieber.

About The Hamilton Company

The Hamilton Company, founded in 1954 by Harold Brown with the acquisition of a six-unit building, has become one of the largest privately held real estate organizations in New England. Originally involved in residential development, The Hamilton Company, Inc. has grown into a full-service real estate firm, managing and leasing approximately 1,500,000 square feet of commercial space and in excess of 5,600 residential units, and developing and constructing both residential and commercial projects throughout Greater Boston. The Hamilton Company is supported by 170 full-time employees. The Company has full-time accounting, legal, architectural, construction, maintenance and property management departments to assist in the management and leasing needs of all of the Company’s commercial and residential buildings. For more information, visit www.thehamiltoncompany.com.

Read More

Coming Soon

PRC Structures $38,950,000 Equity Financing for IDI’s Rivergate II Apartments

Bethesda, MD, April 28, 2021

Working on behalf of The IDI Group Companies, a repeat client, Phillips Realty Capital structured $38,950,000 equity financing for the development of a 318-unit mid-rise multifamily community adjacent to IDI’s 402-unit Rivergate North apartment complex in Woodbridge, VA. The project is located within a Qualified Opportunity Zone and is the second phase of the 720-unit, riverfront apartment community. PTM Partners provided $20,050,000 in joint venture equity and EB5 Capital provided $18,900,000 in preferred equity. Phillips Realty Capital led the financing effort.

Dan Shiff, Principal of Phillips Realty Capital and Managing Director at EB5 Capital, said: “We are excited to see this partnership move forward with a project that will continue the transformation of Woodbridge and Prince William County. Utilizing Phillips Realty Capital’s network of equity relationships and EB5 Capital’s platform, we were able to secure a capital stack that combines Opportunity Zone investment with our EB-5 funds.”

Read More
Commercial Observer
Washington Post

PRC Structures $71,550,000 Refinance for Chicago Data Center Portfolio

Bethesda, MD, April 7, 2021

Phillips Realty Capital announced that its client, Element Critical and Safanad Inc., closed on a $71,550,000 project loan for their Chicago data center portfolio. The loan from Annaly Capital Management, Inc.’s commercial real estate group will be used to enhance and expand two data center facilities located across the street from one another in the Elk Grove Village submarket of Chicago, Illinois. Phillips Realty Capital’s William Lawson, Adam Bieber, Harmon Handorf, and Blake Kline structured the debt financing. The Phillips team has extensive experience securing capital for data centers and coordinated with Element Critical on the $67,000,000 refinancing of its Northern Virginia data center facility in 2019.

Built in 1982 and acquired by Safanad in 2019, the two data centers have nearly 200,000 square feet of rentable area, with operational data center and disaster recovery office space to support 80+ tenants under lease. The data centers, operated by Element Critical, together feature 115,000 square feet of raised floor space and up to 8 megawatts of leasable power capacity. Both facilities provide customers a carrier-neutral environment, network-rich connectivity, and a concurrently maintainable infrastructure that delivers inherent flexibility for medium to large enterprise customers at the edge.

Refinance proceeds support the company’s growth and will be used for upgrades, efficiency enhancements, and continued expansion of critical white floor space to enable hybrid and future-proofed colocation environments for both existing and new customers.

About Element Critical

Element Critical is a leading provider of data center and IT infrastructure services that is jointly owned by Safanad and its industry partner, Industry Capital. Element Critical manages and operates data centers in Silicon Valley, Northern Virginia, Chicago, and Houston. The company’s Tier III hybrid-IT ready facilities are carrier-neutral, network-rich, concurrently maintainable and available in a variety of deployment sizes and densities. Element Critical cares as much about the people they serve as the servers they house. Element Critical offers a data center experience that brings solutions engineering and customer service out of the shadows and into the spotlight. For more information, visit www.elementcritical.com.

About Safanad

Safanad is a global principal investment firm founded in 2009 with its main presence in New York and offices in London and Dubai. The firm creates sustainable value by pursuing opportunities underpinned by long-term social and economic insights and clear public sector policies and plans. As a principal investor, Safanad utilizes its capital, expertise and exceptional management partners to preserve and grow wealth for the firm and its global private and institutional clients. To date, Safanad has successfully executed ~$10 billion of transaction value in the U.S. and Europe across sectors including healthcare, education, student housing, suburban offices, automotive supply chain, and data centers. For more information, visit www.safanad.com.

About Annaly

Annaly Capital Management, Inc. (NYSE: NLY) (“Annaly”) is a leading diversified capital manager that invests in and finances residential and commercial assets. Annaly’s principal business objective is to generate net income for distribution to its stockholders and to optimize its returns through prudent management of its diversified investment strategies. Annaly is internally managed and has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Annaly has entered into a definitive agreement to sell its commercial real estate business. This transaction is subject to customary closing conditions, including applicable regulatory approvals, and is expected to be completed by the third quarter of 2021. Additional information on the company and the commercial real estate transaction can be found at www.annaly.com.

Read More
Commercial Property Executive
Commercial Real Estate Direct

PRC Advises on RAS’s Acquisition of Class A Apartment Complex in Nassau’s Wildlight Community

Bethesda, MD, March 4, 2021

RAS Property Group of Boca Raton announced its off-market acquisition of The Lofts at Wildlight, a brand new 279-unit apartment garden style apartment complex in the Wildlight master planned community located 20 minutes north of downtown Jacksonville, Florida. RAS acquired the asset for $55.8 million.

The Property is comprised of 279 brand new, class A garden apartments in five buildings and offers upscale one-, two and three-bedroom apartments with modern finishes, spacious living areas, fully- equipped kitchens and an open design. Resort-style community amenities include a pool with sundeck, outdoor dining spaces, a 24-hour fitness center and more. The Property is part of the 2,900-acre Wildlight master planned community in the Nassau County submarket of Jacksonville. Upon completion, Wildlight will offer 7 million square feet of office, commercial, medical, industrial and residential space.

“The Lofts at Wildlight acquisition is part of our strategy to invest in multifamily properties in growth-oriented markets throughout the Southeast,” said Thomas Gurney, Managing Partner of RAS. “We seek out quality, well-located properties where we know we can drive returns regardless of the overall market momentum.”

Phillips Realty Capital Managing Director Adam Bieber advised RAS on capitalization of the property.

“The Lofts at Wildlight has clear potential to lease up quickly under RAS’s leadership,” said Bieber. “RAS has an eye for spotting diamonds in the rough and the expertise to seize on those opportunities. Their reputation for consistently producing above-average returns puts them in a unique position to source and close off-market deals like this, despite the pandemic.”

RAS is actively considering other investment opportunities that meet its investment guidelines in the Jacksonville.

About RAS Property Group & RAS Realty Partners

RAS Realty Partners is a real estate investment and development company headquartered in Boca Raton, Florida. RAS Realty brings more than 130 years of collective experience in commercial and residential real estate to every opportunity, specializing in the acquisition, development and operation of multi-family properties across the United States. RAS Property Group is a specialized real estate opportunity fund manager and value-add investor serving institutional clients. The firm focuses on creating diversified portfolios of well-located, quality Class A & B middle market properties at a low-cost basis. Not relying on market momentum to boost value gains, RAS looks to take advantage of market distress and mispriced assets that produce current cash flow. The company is known for its highly-experienced team of innovative investment executives who collaborate closely to execute the firm’s carefully defined investment strategy focused on buying well. For more information, visit rasrealtypartners.com.

Read More

Coming Soon

PRC Structures $141.8 Million Bridge Financing for Recently Delivered Apartments Near Amazon HQ2

Bethesda, MD, November 30, 2020

Phillips Realty Capital announced that its client, Erkiletian Development Company, closed on a $141,789,000 bridge loan from global investment firm KKR to recapitalize The Sur, a recently delivered Class-A 360-unit luxury apartment community in the National Landing submarket of Arlington, Virginia near Amazon’s HQ2 and Virginia Tech’s Innovation Campus in Potomac Yard.

Phillips Realty Capital Managing Director Adam Bieber led the transaction and was assisted by Malcolm Shaw and Bill Wrench. The loan was structured as a three-year, non-recourse, interest-only bridge loan with extension options. Proceeds will be used to recapitalize the construction capital stack, with reserves funding additional lease-up costs.

Bieber explained, “Capital markets have been inconsistent and choppy. The strong sponsorship, exceptional quality of the real estate, and continued strength of the Greater DC market resulted in any extremely competitive bidding war for this project.”

Inspired by Big Sur, a rugged stretch of California’s central coast, The Sur melds sustainable and rustic features to create a warm and sophisticated atmosphere with a modern twist. Situated on a 1.67-acre site at 3400 Potomac Avenue, the 12-story luxury community offers modern unit interiors, state-the-art amenities and abundant outdoor living. Just a short walk from the new Amazon headquarters and Virginia Tech’s Innovation Campus, the property includes 16,503 square feet of retail space and 25,000 square feet of amenities with sweeping views of the Potomac River and downtown D.C. Amenities include an outdoor “ Sur” park with a “tree” filled grove for the via, outdoor handcrafted nests to relax in, firepits, abstract Redwood trees with hanging basket chairs, Zen garden, a fully equipped fitness and wellness center, yoga meditation pod, two beautiful rustic yet modern lobbies with air purifying plant wall, surf board installation authentic to the Northern California surfer, pet spa, conference center and rooftop with tranquil water feature and organic styled cabanas. The Sur is within the National Gateway mixed‐use development, a 40‐acre portion of Potomac Yard that includes a residential, office, and retail assets served by the planned Potomac Yard Metro station.

“KKR is focused on finding great opportunities with top sponsorship in our target markets. We are thrilled to be the lending partner in this stage of The Sur’s transition from completed project to stabilized asset,” said Adam Simon, Director on KKR’s real estate team. “The Sur’s characteristics and sponsors match our high bar for lending in this environment, and we appreciate Phillips Realty Capital’s thoughtfulness and expertise in working with us to structure the optimal debt package for this asset.” Funding for the loan is being provided by KKR Real Estate Finance Trust and KKR’s real estate opportunistic credit fund.

“Our family is very appreciative of Phillips Realty Capital and KKR’s collaborative efforts in delivering the right loan for The Sur,” said Stefanie Erkiletian, president of Erkiletian Development Company. “We also want to extend our gratitude to our construction lender, partners, vendors, and consultants who all played pivotal roles in helping us arrive at this moment. We poured our hearts out into the design and development of this legacy asset that we look forward to sharing with our community for generations.”

“The Sur is an exceptional accomplishment for Erkiletian and I could not be more proud of their hard work,” Bieber said. “As a family business, Erkiletian designs buildings for long-term ownership, and treats their residents like family and it shows. We are appreciative of the opportunity to work as their ambassador on such an important assignment, and we are grateful for all parties that worked so tirelessly throughout the whole process during the pandemic to arrive at this result.

Bieber added, “To our lending partners at KKR – bravo! Their team provided a seamless process and execution, and we look forward to the next opportunity to collaborate in the near future.”

About Erkiletian Development Company

For over 50 years, Erkiletian has developed, constructed and owned properties that have earned the firm a reputation as one of the most trusted names in the Washington D.C. real estate and business community. Today, its portfolio of residential, commercial and mixed communities is proof of its dedication to creating pleasing and effective environments that flourish and grow into desirable destinations. Founded by Myron (Mike) P. Erkiletian, the firm remains a family-owned business that is guided by the principles he set in place: to develop, build and invest in properties that define a region; to employ building and management practices that are responsible and forward thinking; and to be committed to integrity in every relationship we make. For more information visit www.erkiletian.com.

Read More

Commercial Observer
REBusiness Online
Property Funds World
Commercial Real Estate Direct
CoStar

PRC Arranges $12,500,000 for Peterson Companies’ National Harbor Office Building

Bethesda, MD, September 23, 2020

Working on behalf of repeat client Peterson Companies, Phillips Realty Capital Principal Mark Remington structured $12,500,000 permanent financing from Fulton Bank for 6710 Oxon Hill Road, a 117,005 SF office building located in the National Harbor complex in Oxon Hill, Maryland.

Remington said, “Peterson is a blue-chip sponsor, long-term holder and wanted to monetize its recent success after restabilizing the property. Despite the challenging times, we found a borrower-friendly lender in Fulton Bank.”

Built in 1990, 6710 Oxon Hill is a five-story office building totaling 117,005 square feet of office space on 7.65-acres in the National Harbor neighborhood along the Potomac River. As of March 2020, the Property was 94% leased to a mix of medical users and both public and private office tenants. The property is managed by Peterson Companies and offers a marble lobby and flexible, efficient floor plates of ±24,408 square feet.

Phillips Realty Capital’s underwriting team representing the borrower included Alec Jenkins and Bill Wrench.

About Peterson Companies

As one of the region’s largest privately-owned real estate developer, Peterson Companies has been consistently delivering some of the Washington, DC area’s most exciting destinations for more than 50 years. With a portfolio that includes National Harbor, Downtown Silver Spring, Fair Lakes, and Fairfax Corner, Peterson Companies continually strives to enhance the local community and develop vibrant properties. For more information, visit petersoncos.com.

About Fulton Bank

Fulton Bank, N.A., a subsidiary of Fulton Financial Corporation (NASDAQ: FULT), offers a broad array of financial products and services in Pennsylvania, New Jersey, Maryland, Delaware, and Virginia. For more information, visit fultonbank.com.

Read More

Coming Soon

PRC Completes Full Cycle Sale & 1031 Exchange with the Acquisition of Class A Apartments in Plano, TX

Bethesda, MD, August 18, 2020

Phillips Realty Capital (PRC) is pleased to announce that a family office client operating as The Generic Management partnered with CAF Capital Partners to jointly purchase a five-story, 459-unit Class A apartment building in Plano, TX. The acquisition was financed by a combination of 1031 exchange proceeds from a data center land sale in June and a $63,247,000 Freddie Mac loan.

The data center land disposition and joint venture apartment acquisition were advised by a team at Phillips Realty Capital led by Adam Bieber and William Lawson. The team also structured and sourced the agency debt financing.

Evoke is located at 1025 Preston Road in Plano, offering studio, one-, two- and three-bedroom units with superb finishes and desired amenities such as a hammock courtyard, indoor/outdoor lounge, state of the art TechnoGym and spin studio, catering kitchen, car wash station, 24-hour emergency maintenance, dog park and spa, and a resort-style swimming pool with a rain curtain. With easy access to The President George Bush Turnpike and the Dallas North Tollway, residents are minutes from Legacy Center, CityLine, Addison, and DFW Airport, which are some of the largest employment centers in North Texas.

“Timing was all the more critical given the impact the COVID-19 pandemic was having on the investment sales market,” Bieber explained. “Not only were we tasked to find a project that fit the investment parameters of the family, but we were as focused to find a partner that has the infrastructure, experience, and platform to mesh with the family’s long-term investment goals. Evoke proved to be the ideal investment, especially with an expert operator like CAF.”

James Napper, President of The Generic Management said, “The Phillips team was able to execute a complex strategy that helped us unlock the value of a previously idle asset. They served not just as our mortgage banker, but as trusted business strategy advisors. We are equally excited about our new partnership with CAF at Evoke, and given the synergy, we believe it is the start of a long-term investing partnership.”

“We’re excited to partner with The Generic Management on this venture. Their entrepreneurial approach to real estate investing is a great fit for our team and this property is a great fit for our portfolio,” said Chris Faulkner, CEO of CAF Capital Partners.

About The Generic Management

The Generic Management is a private single family office.

About CAF Capital Partners

CAF Capital Partners is a Dallas based private equity real estate firm, specializing in the acquisition, redevelopment, re-positioning and subsequent sale of institutional quality multifamily real estate. Our track record includes closing over $4 billion in apartment properties and asset managing over 26,000 multifamily units in Texas, and across the Southwest United States. Our team consists of highly respected, seasoned, real estate and business executives, supported by strong industry professionals and market experts with institutional backgrounds. For more information, visit cafcapital.com.

Read More

Dallas Morning News
Property Funds World

PRC Announces $29,000,000 Bridge Financing for Reston Metro Center One

Bethesda, MD, May 29, 2020

Phillips Realty Capital (“PRC”) announces that it has arranged $29 million in financing for Reston Metro Center One (the “Property”), a 124,076 SF office building  located at 12120 Sunrise Valley Drive and within walking distance of the future Reston Town Center Silver Line Metrorail Station.

The PRC team worked exclusively on behalf of the borrower, HighBrook Investors, to secure the three-year plus extension options, floating-rate loan provided by Rubenstein Mortgage Capital (“RMC”), the debt investment platform of Rubenstein Partners, L.P. (“Rubenstein”). The vacant Property was acquired through a note sale where HighBrook subsequently took title. Loan proceeds represented initial financing for the acquisition with additional funds for capital expenditures and leasing reserves.

“HighBrook’s repositioning experience should serve them well in transforming Reston Metro Center One, and we are pleased to support their business plan with this financing. We are excited about our partnership with HighBrook, and the Phillips Realty Capital team played an integral role in our successful execution,” said Ashesh Parikh, RMC.

Built in 2000, the fully vacant Property provides a premier headquarters opportunity for prospective tenants relocating to Reston, offering signage visibility from the Dulles Toll Road, walkable Metro access, and is located 6.5 miles from Washington Dulles International Airport. Property amenities include ample parking (3.5 spaces per 1,000 rentable square feet), access to high level fiber, an employee lounge, a tenant fitness center with full locker rooms, and is surrounded by ample walkable amenities including the Reston Metro Center and the future $1.4 billion Halley Rise mixed-use development.

The Phillips Realty Capital team that structured the financing on behalf of the borrower included Malcolm Shaw, Steve Shaw, Harmon Handorf, and Bill Wrench.

About Highbrook Investors

HighBrook Investors is a real estate private equity firm which acquires and actively manages property investments in the United States and Europe. Utilizing its collective experience across private, public, domestic, and developed international markets, the HighBrook team specializes in sourcing and identifying unique opportunities for value investing across market cycles. HighBrook purchased its first asset in 2010 and has since raised three fully discretionary commingled funds and two co-investment vehicles. For more information, visit www.highbrookinvestors.com.

About Rubenstein Mortgage Capital

RMC is the dedicated debt investment platform of Rubenstein Partners, focused exclusively on mortgage lending and debt investments. RMC provides fully discretionary balance sheet lending solutions for transitional office investors and office project developers seeking non-recourse first mortgage financing up to 80% of the capital structure. RMC provides flexible mortgage terms, and underwrites and asset manages its mortgage loan investments.

About Rubenstein Partners

Rubenstein Partners, founded in September 2005, is a private real estate investment advisory firm with operations throughout the United States. The firm is led by its founder, David Rubenstein, and a group of senior real estate executives, and is focused on office real estate equity and debt investments in the U.S. Rubenstein Partners’ predecessor company, The Rubenstein Company, LP and affiliates, founded in 1969, was one of the largest private owner operators of Class A office real estate in the Mid-Atlantic, owning and operating a portfolio of assets valued at approximately $1.2 billion at the time of its disposition in 2004. Since 2005, Rubenstein Partners has, on behalf of its investors and clients, invested in more than 22 million square feet of office real estate assets throughout the United States. For more information, visit www.rubensteinpartners.com.

Read More

Coming Soon

PRC Secures $49,625,000 Acquisition Loan for Two Herndon Office Buildings

Bethesda, MD, January 16, 2020

A joint venture between Goodstone LLC and Waterfall Asset Management LLC announced that it secured $49,625,000 of debt financing from Bridge Investment Group to acquire and renovate Northridge I & II, two separate but contiguous properties that jointly offer 258, 452 square feet of office space in Herndon, Virginia adjacent to Amazon Web Service’s east coast hub. The acquisition loan structured by Phillips Realty Capital includes funding for 100% of Goodstone’s strategic modernization plans that combine the properties into one integrated campus with shared amenities and upgrades that will restore the buildings to “best-in-class” status. Timing of this transformative redevelopment will be concurrent with delivery of the proximate Innovation Center Metro mixed-use transit center.

“Our relationships with two different property sellers at this unique time and location presented a special set of circumstances we are acutely well positioned to leverage,” said Stephen Durr, President of Goodstone. “By consolidating ownership, we can make high-impact investments at competitive rates, timed to align with growth around the new metro so the value of the new combined asset will exceed the sum of its parts.” Goodstone plans to unify the properties with shared tenant amenities including food service, conferencing, fitness and tenant collaboration spaces, as well as deliver contemporary spec suites and turnkey tenant spaces desired by today’s employers seeking to attract talent.

“Northridge is well-located to serve a growing tenant market of technology, cyber-security, healthcare, and defense firms,” said Jay Haberman, Managing Director, Bridge Investment Group. “The properties are 87% leased, falling to 67% over the next eighteen months, which is ideal timing for Goodstone to implement its transformative vision tailored to suit the needs of this market.”

“The financing structure includes good news money to maximize the upside of Goodstone’s aggressive stabilization plan,” said John Sieber, Phillips Realty Capital Principal. “Phillips has worked with Goodstone on other value-add deals and with Bridge on recent recapitalizations and acquisitions. That combined experience and related knowledge served both the borrower and lender.”

A Cushman & Wakefield team led by Drew Flood and Shaun Collins represented the seller of Northridge I. Bill Prutting and Jim Molloy with Jones Lang LaSalle represented the seller of Northridge II.

About Goodstone

Goodstone LLC is a commercial real estate investment management firm headquartered in Washington, DC with investments in Maryland, Virginia and Texas. Goodstone sources, acquires and manages commercial office building investment opportunities on behalf of the firm’s principals, private clients and financial institutions. For more information visit www.goodstonellc.com.

About Waterfall Asset Management, LLC

Waterfall Asset Management, LLC is an SEC-registered institutional asset manager focused on structured credit and private equity investments. Waterfall was founded in 2005 and had approximately $8.7 billion in assets under management as of November 2019. Waterfall Asset Management’s headquarter offices are located in New York City. More information can be found online at www.waterfallam.com.

About Bridge Investment Group

A team lead by Jay Haberman originated the loan and provided the funds to acquire the Class-A office property. Bridge Investment Group is a privately-held real estate investment management firm with $16 billion in assets under management. Bridge combines its 2,700-person, nationwide operating platform with specialized teams of investment professionals focused on select U.S. real estate verticals, which Bridge believes offer above-market opportunity: multifamily, office, seniors housing, affordable housing, opportunity zones, and debt strategies. Read more at www.bridgeig.com.

Read More

Washington Business Journal
Virginia Business
Connect Media CRE News
MBA News Link

PRC Structures $27.8M Investment with Argosy for Woodfield OZ-Qualified Apartments

Bethesda, MD, January 14, 2020

Phillips Realty Capital (PRC) announced that a $27,800,000 equity financing on behalf of Woodfield Development has closed and funded. Argosy Real Estate Partners (AREP) provided a joint venture equity investment toward the development of Morrison Yard, a 380-unit, trophy multifamily community in Charleston’s Morrison Drive (NoMo) neighborhood on the Upper Peninsula. The project is AREP’s fourth qualified Opportunity Zone investment. The joint venture equity investment was structured by Adam Bieber, Managing Director at Phillips Realty Capital.

Construction has commenced on the site, which will consist of a ten-story concrete high-rise building and a six-story wood-framed mid-rise building, each featuring studio, one-, two-, and three-bedroom floor plans with best-in-class interior appointments and community amenities. The complex will offer ground-floor retail, a two-story parking structure, an expansive clubhouse, eight open courtyard spaces, multiple water features, and unparalleled views. The NoMo area in the Peninsula submarket is emerging as Charleston’s premier residential destination, offering tremendous access to the market’s primary employment nodes and lifestyle amenity destinations in nearby Mount Pleasant.

“We are thrilled to have had the opportunity to work on behalf of Woodfield Investments and Argosy Real Estate Partners on the structuring of Morrison Yard,” Bieber said. “Both groups contain the perfect mixture of expertise and experience in the market, and we look forward to seeing how this incredible, transformative project changes the landscape of the NoMo District in Charleston.“

“Since the moment we sourced Morrison Yard, we have been excited about the opportunity. This development was sourced prior to the Opportunity Zone designation, and upon receiving that designation, we were excited about how the advantages would benefit our partners as well as the community,” said Woodfield Partner Mike Schwarz.

“Adam and PRC have been a terrific partner in understanding our developments and finding excellent parties to collaborate with,” Schwarz added. “The entire Woodfield team is elated about our first joint venture with Argosy Real Estate Partners, which we hope will be the first of many.”

Commenting on the project, Argosy Vice President Jason Abel said, “The Argosy model has always been to source opportunities in partnership with experienced local operating partners. Charleston is a market that we have recently invested in and targeted, and we are excited about the partnership with Woodfield Development and the addition of Morrison Yard to our platform. We echo the excitement around the project and look forward to a successful relationship with Woodfield on what we hope will be the beginning of a multi-project relationship.”

About Woodfield Investments

Woodfield Development is a premier developer and operator of Class A multifamily communities. Amongst its peer group, the Woodfield partnership has unmatched experience in development, asset management and real estate finance. Since the formation of the company in 2005, Woodfield has completed 30 communities, has 10 communities under construction and numerous projects in various stages of entitlement and design. From the first project to each thereafter, the singular goal is to deliver well-conceived, thoughtfully designed, market supported projects that hit our markets’ sweet spot and create value for our investors and partners. With a track record that stands above, Woodfield Development sets out to assemble the best team of designers, consultants, architects, contractors and capital sources – every development, every time. Read more at www.woodfieldinvestments.com.

About Argosy Real Estate Partners

Argosy Real Estate Partners specializes in opportunistic, value-add and core-plus real estate investments in the middle market. Argosy Real Estate Partners invests in multifamily, office, retail, lodging and for-sale residential opportunities throughout the United States. Argosy currently manages over $1.2 billion of gross value of real estate assets and uncommitted equity capital on behalf of institutional investors, family offices and high net worth individuals. Argosy Real Estate Partners is a subsidiary of Argosy Capital. For further information, visit www.argosyrep.com.

Read More

Coming Soon