KKR Provides Bridge Loan for Luxury Apartment Complex near Amazon HQ2 – Commercial Observer
Investment giant KKR provided a bridge loan of $ 141.79 million to Erkiletian Development Corporation recapitalize The Sur, a recently completed 360-unit luxury apartment community in the National Landing submarket of Arlington, Va., near Washington, DC
Phillips Realty Capital facilitated the transaction on behalf of the owner.
“Erkiletian offers an exceptional community located in one of the most active and dynamic areas of the DMV”, Adam biebersaid the CEO of Phillips Realty Capital, who structured the transaction. “KKR sees the value of the asset as well as the added value Erkiletian brings to the table. This new influx of capital will contribute to the additional rental of what will undoubtedly be one of the region’s most sought-after new addresses.
The loan was arranged as a three-year, non-recourse, interest-only, bridge loan with extension options. Proceeds from the new financing will be used to recapitalize the construction asset pile, with reserves financing additional rental costs.
“Capital markets have been inconsistent and turbulent,” Bieber said. “The strong sponsorship, exceptional quality of real estate and the continued strength of the Greater DC market have resulted in an extremely competitive bidding war for this project.”
Located at 3400 Potomac Avenue on 1.67 acres, the 12-story community features modern interiors and amenities, along with plenty of outdoor space. It also offers 16,503 square feet of retail space and overlooks the Potomac River and downtown DC
The community is about a mile from Amazon‘s HQ2 and Virginie Tech‘s Innovation Campus.
Phillips Realty Capital Malcolm shaw and Ball wrench joins Bieber on the case.