CHEVY CHASE, Md. and RICHMOND, Va. – June 26, 2018 – Berkadia today announced the sale and financing of Oakwood Falls Church, a 576-unit high-rise multifamily property in Falls Church, Virginia. Senior Managing Director Scott Melnick, Senior Director Jeff Coles, Director Adam Preski and Analyst Ken Bickel of Berkadia’s Chevy Chase, Maryland office completed the $132 million sale on behalf of the seller, a Los Angeles-based partnership which built the property in 1974.
“Oakwood Falls Church has significant repositioning potential and is well-located near excellent schools, Interstate Route 66, the East Falls Church Metro Station and great retail,” said Melnick. “The Insight team was selected by the seller for their unique ability to re-create the property and maximize its value”
Berkadia’s John Reed of the Richmond, Virginia office and Jonathan Pratt of the Chevy Chase, Maryland office secured $100.26 million in permanent refinancing for the buyer, Arlington, Virginia-based Insight Property Group through Citizens National Bank. The bridge loan was specifically structured to meet the goals of the buyer’s repositioning of the property from corporate housing to market rate multifamily. The non-recourse three-year loan features a floating interest rate with a 30-year amortization schedule. The deal closed on June 15.
“With a uniquely large percentage of the property dedicated to corporate housing, the key to attractive financing was our ability to partner Insight Property Group with a lender who understood the property’s ability to maintain performance thresholds through its conversion to a fully-conventional multifamily asset,” said Reed.
“The Washington, D.C. Metro and Richmond offices worked in tandem to ensure that Berkadia provided an array of debt quotes from a variety of lending sources. Through a competitive process, we sourced the best terms in the market, resulting in an executed application within 14 days of Insight going under contract on the property,” added Pratt.
Built in 1974 and located at 501 Roosevelt Blvd., Oakwood Falls Church has studio, one- and two-bedroom floorplans. All units were renovated in 2012 and feature fully-equipped kitchens, in-unit washers and dryers and private patios or balconies. Residents have access to a fitness center, a swimming pool and hot tub, a business center, a tennis court with a pro shop, an on-site convenience store and a free shuttle to nearby public transportation. The property also offers a staffed front desk and housekeeping and is approximately 10 miles from downtown Washington, D.C.