RICHMOND, Va. – March 20, 2019 – Berkadia today announced the financing of Magnolia Green Apartments, a garden-style multifamily property to be constructed in Moseley, Virginia. Senior Managing Director David Blake and Director Amy Gay of Berkadia’s Richmond, Virginia office originated the $35.12 million construction loan through Berkadia’s HUD program. The borrower was a single-asset entity formed between Schell Brothers and iStar (NYSE: STAR), and the deal closed on February 27.
The HUD 221(d)(4) construction-perm loan features a 4.15 percent fixed interest rate and a 40-year amortization schedule. The buildings were designed by Poole and Poole Architecture, and Branch Builds was chosen as the General Contractor.
“Magnolia Green jumped on the development scene five years ago and continues to be an example of a thriving new urbanism community in Chesterfield County. These apartments are the first multifamily offerings in the master planned community and will help solidify the unique contributions this neighborhood has provided to the area by design,” said Gay. “This multifamily community will also have the distinction of being developed further west in Chesterfield County than any other apartment deal to date.”
Shane Burnette, Richmond Division President of Schell Brothers, added, “We have constructed numerous single-family homes in this amazing master planned community for the last few years and were so impressed that we looked for other ways to be involved in such a successful development. Developing apartments is a new endeavor for Schell in Virginia, and we are proud to be expanding our services here.”
Magnolia Green Apartments will be constructed along Magnolia Green Parkway, near Hull Street Road, affording convenient access to nearby Magnolia Green Golf Club in addition to the World War II Veterans Memorial Highway and numerous retail, dining and entertainments options along the Route 360 corridor.