Grandbridge Funds $23.65 Million Virginia Multifamily Acquisition

Published On: 08.03.17

Northgate At Falls ChurchWASHINGTON, D.C. Grandbridge Real Estate Capital recently closed a $23,650,000 first mortgage loan secured by a 104-unit multifamily, mid-rise community in Falls Church, Virginia. 

Washington, D.C.-based Senior Vice President Paul Aanonsen, assisted by Patrick Brown, originated the acquisition financing for a repeat client, Morguard Corporation (Morguard). Morguard is a real estate investment company whose principal activities include the acquisition and ownership of commercial and multi-unit residential real estate properties. Morguard is one of Canada’s premier real estate investment advisors and management companies, representing major institutional and private investors.

The fixed rate loan was funded through Fannie Mae’s DUS® Early Rate Lock multifamily loan product, enabling Grandbridge to structure the nonrecourse financing with 60 months of interest-only, a 10-year term and 30-year amortization. The transaction closed with an interest rate of 4.045 percent.

“This transaction had several different moving pieces, including a commercial component and ground lease. With such a strong and experienced borrower, we were able to go from application to close in less than 5 weeks,” said Aanonsen.

Built in 2014, Northgate at Falls Church is a mixed-use building containing 97,188 square feet of net rentable multifamily space, 20,561 square feet of retail space, and 12,796 square feet office space. The total net rentable area (including all residential and commercial) is 130,545. The commercial (retail and office) is 25.6 percent of the total rentable square footage. The five-story midrise apartment building is situated on approximately 1.5 acres of land. There are two levels of below grade parking beneath the building. In conjunction with a ground lease, the borrower has a 99-year leasehold interest in the property. The property was 99.04% occupied at closing and upon acquisition, the property will be managed by an affiliate of Morguard.

Onsite amenities include a clubroom, fitness center, concierge, Wi-Fi lounge, two private courtyards with fireplaces and grills, and bike storage. Select units feature gourmet kitchens with granite island countertops, stainless appliances, wood laminate flooring in living room and kitchen, ceramic tile flooring in bathroom, walk-in closets, programmable thermostats, washer/dryer in unit, high-speed internet, cable, and telephone, and a balcony, patio, or terraces.

About Grandbridge Real Estate Capital LLC
Headquartered in Charlotte, N.C., Grandbridge Real Estate Capital, a subsidiary of Branch Banking and Trust Company (BB&T), arranges permanent commercial and multifamily real estate loans, services loan portfolios; and provides asset and portfolio management through its broad investor base that includes insurance companies, CMBS investors, pension fund advisors, commercial banks and capital markets investors; and its proprietary lending platform, BB&T Real Estate Funding. The company is a Freddie Mac Multifamily Approved Seller/Servicer for Conventional and Seniors Housing, a Fannie Mae DUS® lender and an approved FHA MAP and LEAN health care lender. With a servicing portfolio of $31 billion, Grandbridge, an S&P strong rated servicer, services loan portfolios and provides asset and portfolio management nationwide for all capital providers including Freddie Mac, Fannie Mae, Ginnie Mae, insurance companies, banks and more than 250 securitizations. More information about Grandbridge and its full line of products and services is available at Grandbridge.com.

About BB&T
BB&T is one of the largest financial services holding companies in the U.S. with $221.2 billion in assets and market capitalization of $36.7 billion as of June 30, 2017. Building on a long tradition of excellence in community banking, BB&T offers a wide range of financial services including retail and commercial banking, investments, insurance, wealth management, asset management, mortgage, corporate banking, capital markets and specialized lending. Based in Winston-Salem, N.C., BB&T operates over 2,100 financial centers in 15 states and Washington, D.C. A Fortune 500 company, BB&T was recognized as one of Forbes' 2017 Best Banks in America and is consistently recognized for outstanding client service by Greenwich Associates for small business and middle market banking. More information about BB&T and its full line of products and services is available at BBT.com.