Dealmaker: Phillips Realty Capital Structures $58M in Debt, Equity for Maryland Multifamily

Phillips Realty Capital, Bethesda, Md., arranged $58 million in debt and equity for St. Joseph Apartments, a planned 268-unit apartment property in Upper Marlboro, Md.  

Varsity Investment Group, also headquartered in Bethesda, closed on a $45.1 million construction loan from United Bank, Charleston, W.V., to develop the four-story Class A property.

PRC Principal Mark Remington and Director of Underwriting Alec Jenkins also sourced a $12.7 million preferred equity investment from FCP, a privately held real estate investment company headquartered in Chevy Chase, Md.

Upon completion, St. Joseph Apartments will offer units with condominium-quality finishes. Nearby retail includes the Woodmore Town Center, which is anchored by Wegman’s, Costco and Best Buy. The Largo Metro Station is less than one mile away and the $540 million University of Maryland-Capital Region Medical Center which is scheduled to open nearby in June.

Varsity Investment Group Principal Donnie Gross said the St. Joseph Apartments will fill a need for a growing population of young professionals seeking modern amenities, suburban conveniences and easy access to Metro.

Remington noted Varsity’s reputation as an experienced, bankable sponsor helped attract financing partners, “as did the property’s attractive cost basis for a metro-oriented, suburban D.C. property,” he said.