At 10 times the size of a typical garden apartment community, Franklin Park at Greenbelt Station provides valuable workforce housing in the Washington, D.C. market.
PNC Real Estate worked closely with Freddie Mac to structure an attractive refinancing package for the sponsor.
Constructed in multiple phases from 1963 through 1975, Franklin Park at Greenbelt Station comprises 98 two- and three-story brick garden apartment buildings. It is located just inside the Capital Beltway within easy commuting distance of the University of Maryland’s main campus at College Park as well as multiple military and federal government employment centers. The vast majority of the property is affordable to families making between 60 and 80 percent of Area Median Income (AMI).
Since 2010, the property management company, Fieldstone I LLC, has invested more than $29 million to upgrade the property with roof replacements, landscaping, a new fitness center and other interior and exterior improvements. Some amenities include a lighted walking path to Greenbelt Metro/MARC station, an on-site mini-mart and an on-site full service health care center with urgent care facilities.
In close collaboration with Freddie Mac, PNC Real Estate has helped to ensure that affordable, well-maintained housing will be available for the long term at a cost that is advantageous to the sponsor. This refinance enabled the sponsors to streamline and consolidate ownership by buying out various limited partner interests.
Due to the nature of the transaction and the property’s status as workforce housing, the loan had to be delivered and purchased by Freddie Mac by December 1, 2015. PNC Real Estate worked with Freddie Mac to enable a unique structured defeasance by using a custom Freddie Mac security, saving the sponsors significant money and further streamlining the refinance process.
Working around the clock and through the Thanksgiving holiday, the PNC Real Estate team was able to close on November 30, 2015. It was the largest Freddie Mac loan PNC Real Estate has closed to date.
Date: November 2015
Location: Prince George County, Maryland
Financing Amount: $300 million
Financing Type: Freddie Mac
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