News & Events from the Washington DC Business Group – April 2021 – Real Estate & Construction

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The Kelley Drye Business Group in Washington, DC is pleased to share the following transactions that we have completed over the past year:

Acquisition of Frederick, Maryland Office Park; and subsequent sale of a building.

Finmarc Management affiliates have acquired an office park of approximately 440,000 square feet (including 5 fresh plots and a ground lease), consisting of 11 buildings, for more than $ 40 million in an exchange of 1031 of the same nature. Shortly after acquiring the office park, Kelley Drye’s clients initiated a rental program and set up a condominium lot to maximize property value. In March 2021, our clients sold one of the buildings for over $ 7.5 million. Kelley Drye represented Finmarc affiliates in all aspects of the acquisition and sale, including $ 33.75 million in mortgage financing in connection with the original acquisition provided by City National Bank.

Investor buyout and refinancing of a 324-unit multi-family project in District Heights, Maryland.

Kelley Drye represented a subsidiary of Dragone Realty in connection with the buyout of US and Irish investors and mortgage refinancing of Verona at Station Square, a 324-unit community in District Heights, Maryland. Capital One is behind the new $ 41 million Freddie Mac loan. Additional preferred stock financing came from a subsidiary of real estate private equity investor Harbor Group. The excess funds will be used to renovate the property, a project that has been part of the Dragone portfolio since 2015 (when Kelley Drye represented Dragone in the initial acquisition and syndication of the property).

Preferred stock investment in two hotels in Minneapolis.

Kelley Drye represented the Alex Affiliates. Brown Realty in a preferred stock investment in two selected service hotels in Minneapolis, Minnesota, totaling nearly $ 10 million in fresh capital. The transactions were complicated by the negotiation of new joint venture agreements with existing shareholders as well as the negotiation of amendments to each hotel’s senior mortgage loan to recognize the privileged member’s rights. Preferred equity funds are intended to help hotels manage their businesses during the remainder of the COVID-19 pandemic.

Purchase of multi-family properties in College Park, Maryland.

Kelley Drye represented residential property buyers located at 7302 Yale Avenue and 4424 Hartwick Road in College Park, Maryland. Mortgage financing for the purchase of cash was provided by Sandy Spring Bank. The purchase is part of our clients’ long term plans to redevelop the properties as part of a new mixed-use commercial and residential development. The transaction was complicated by the need of our clients to reinvest 1,031 proceeds of the same nature from the sale of goods.

Sale of a commercial condominium project in Alexandria, Virginia.

Kelley Drye represented affiliates of her longtime client, Finmarc Management, in the sale of a commercial condominium project overlooking the Potomac River in the Old Town section of Alexandria, Va. For a prize purchase of more than $ 13 million. Kelley Drye advised Finmarc on the initial purchase and financing of this property, which included a second building already sold, in 2014. The buyer intends to convert the property into a 54 unit residential condominium.

Buying a Single Tenant Commercial Property at DuPont Circle, Washington, DC

Kelley Drye represented White Star Investments in the acquisition of 1647 20th Street, NW in the DuPont Circle neighborhood of Washington, DC which was previously occupied by Bareburger. White Star expects a new restaurant to open in the space later this year, following the improvement in the space.

Freddie Mac Securitization of $ 333 million in multi-family loans by Citibank NA

Kelley Drye represented Freddie Mac in connection with the securitization of approximately $ 333 million of multi-family loans by Citibank NA and its subsidiaries. The transaction was Citibank Multifamily Housing Mortgage Loan Trust 2020-Q012.

Sale of Flex / Industrial property in Rockville, Maryland.

Kelley Drye represented The Sellers, a joint venture led by executives of the Greenhill Companies and the Maven Group, of 12300 Carroll Avenue in Rockville, Md. For $ 4.4 million. The 22,000 square foot flexible industrial building was 87.5% occupied by tenants stabilized in place, including Silver Lining Design Group and Oxman Studios, Inc. The sale was closed as part of an exchange of 1,031 as well. nature and the proceeds will be used to finance the purchase of new value-added properties.

Refinancing of Manhattan Commercial Building and Springfield, Virginia Retail Property.

Kelley Drye assisted affiliates of Squire Investments and Finmarc Management with a $ 27.5 million mortgage refinance of properties in New York and Springfield, Virginia. The City National Bank provided the funding.

Sale of a single tenant commercial property in Edgewater, Maryland.

Kelley Drye represented a subsidiary of White Star Investments in the sale of a single tenant freestanding building on Solomons Island Road in Edgewater, MD. The building was once occupied by the Mexican restaurant Plazuelas and the new owner is expected to re-let the property with a new restaurant.

Prince George County Recapitalization, Maryland Apartment Project.

Kelley Drye represented Dragone Realty affiliates in a recapitalization from Verona to Silver Hill, a 214-unit multi-family complex in Prince George County, Maryland. Capital One launched the new Fannie Mae loan in the amount of just over $ 33 million.

Sale of land in Prince William County, Virginia, for the development of a data center.

Kelley Drye represented longtime client Gainesville Associates, LLC in the sale of 58 acres of vacant land in Prince William County to an Amazon affiliate. Kelley Drye advised Gainesville Associates during lengthy negotiations on the sale, including a post-closing escrow agreement and the required subdivision of the site.

Sale of commercial buildings in Rockville, Maryland.

Kelley Drye represented subsidiaries of Finmarc Management in two separate sales of commercial properties in Rockville, Montgomery County, Maryland for $ 12 million. Our clients acquired this multi-plot property in 2017, rented it out and started selling individual plots in mid-2020. In addition to the sales contracts and the 1031 documentation, the work consisted of negotiating an amendment to the declaration on the property and the parking and access easements in the context of the sales.

Freddie Mac / California Community Reinvestment Corporation $ 186 million Securitization of multi-family loans.

Kelley Drye represented Freddie Mac in connection with the securitization of approximately $ 186 million of multi-family loans by the California Community Reinvestment Corporation (“CCRC”). The transaction was CPAB’s Affordable Multi-Family Home Mortgage Trust 2020-Q014.

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Thought leadership

Kelley Drye Real Estate Alerts

The Kelley Drye Real Estate practice group is closely monitoring all facets of real estate industry developments and opportunities arising from the disruption to the economy caused by the COVID-19 pandemic. Our Real Estate Industry Tracker provides what we hope is a useful summary of some of the most important legal and regulatory developments, as well as insight into emerging markets and practice trends in the real estate industry. See the link to our Monitoring of real estate sector alerts.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought on your particular situation.



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