Dealmaker: Cushman & Wakefield Arranges $270M for Office, Multifamily
Cushman & Wakefield, Washington, D.C. secured $174 million for a 13-property multifamily portfolio and a new office building in Washington, D.C.
C&W secured a $174 million loan on behalf of Kay Management, which requested funding for 13 properties encompassing 5,007 multi-family units. The properties make up one-third of the company’s total portfolio and are located across multiple markets in Maryland and Virginia.
Philip Mudd and Brad Geiger, Executive Managing Director and Senior Vice President at Cushman & Wakefield, respectively, represented the borrower in securing the Fannie Mae fixed-rate loan through PGIM real estate finances. Law firm Grossberg, Yochelson, Fox & Beyda represented Kay Management at the settlement. Cushman & Wakefield negotiated 13 separate loans, all with 15-year terms.
“The properties in this portfolio were all well-located, with some near the Purple Line [Washington-area public transportation],” Mudd said. “The portfolio was extremely well managed, and the high occupancy made this project particularly secure for the lender.”
The Kay Management portfolio consists of 35 apartment communities. Those include in the agreement include Londonderry Apartments, Seneca Club, Wayne Manchester and White Oak Towers in Montgomery County, Md.; Deerfield Run, Gateway Square, Iverson Towers, Kenilworth Towers, Kirkwood Apartments, Lansdowne Village and Top of the Hill in Prince George’s County, Md.; Harbour Gates in Anne Arundel County, Md.; and London Park Tower in Alexandria, Va. The apartment mix comprises mid-rise, high-rise, garden-style and town homes in communities and neighborhoods with amenities and convenient transportation.
Cushman & Wakefield also secured a construction loan for 1050 17th Street NW on behalf of The Lenkin Co.. The loan will be used to construct a new building, with renovations slated to begin later this year.
Mudd and Geiger represented the borrower in securing the loan from Eagle Bank. The team negotiated an agreement that will provide construction financing.
“There were several lenders interested in financing this project,” said Mudd. “This was due to the quality, design, ownership and extraordinary location.”
1050 17th Street NW is a 145,000-square-foot office building in Washington’s Golden Triangle distric. The existing building, constructed by Melvin Lenkin in the mid-1970s, will be demolished and a new speculative office building will be constructed. The new property will also include ground-floor retail and below-grade parking. It will feature suites and amenities within proximity to public transportation.
