Phillips Realty Capital Arranges $31M in Multifamily Equity

Phillips Realty Capital, Bethesda, Md., secured $31.3 million in equity for Woodfield Valley Forge, an apartment community in King of Prussia, Pa.

A global investment management company provided the joint venture equity investment to Woodfield Investments, Arlington, Va. Phillips Realty Capital Managing Director Adam Bieber structured the deal.

Woodfield Valley Forge is a 320-unit Class A apartment community in The Village at Valley Forge, a 122-acre mixed-use development conceived as a village with its own town center, the King of Prussia Town Center. JBG Cos., Chevy Chase, Md., developed the retail and dining center, which a CBRE Global Investors fund acquired in May. At the time it was nearly 90 percent leased.

Phillips Realty Capital also secured a $30 million first mortgage from Blue Vista Finance to renovate and reposition 6116 Executive Boulevard in North Bethesda, Md.

Goodstone LLC, Washington, D.C., acquired the vacant building in April for $9.5 million from a special servicer through a Ten-X Commercial auction. The last arms-length sale of the property occurred in 2005 for $81.5 million. The 218,000-square-foot, eight-story office building was built in 1989 and vacated by the National Institutes of Health’s National Cancer Institute in 2013.

Phillips Realty Capital’s John Sieber, David Foulk and Patrick Kelly structured the financing based on market analysis by Chief Underwriter Bill Wrench.

Goodstone’s $10 million capital investment plan includes new entries, elevators and common areas and an upper-floor tenant terrace. Goodstone selected JLL to handle the leasing and Cushman & Wakefield to manage the property. The firm expects occupancy is be available in June 2018.