$260M Refinancing Deal Closes for D.C. Apartment Community
- Mar 13, 2008
The River House Apartment Complex, Vornado Realty Trust’s 1,670-unit residential property sited just a stone’s throw from Washington, D.C., has been refinanced to the tune of $260 million.Vornado’s two-part financing deal was comprised of a $196 million seven-year interest-only mortgage at a fixed rate of 5.43 percent, and a $64 million interest only 10-year floating rate mortgage secured at 4.36 percent, a rate that combines the Freddie Mac Reference Note rate with an additional 1.53 percent.Consisting of three high-rise structures, River House is located in the Arlington, Va., submarket of Pentagon City. The property was completed in 1958 and underwent a comprehensive renovation in 2000. Vornado has owned River House since its April 2007 completion of the purchase of H Street Building Corp. The REIT bought H Street, which owned a 50 percent interest in real estate assets in Northern Virginia and Washington, D.C., in July 2005; it was last year’s acquisition of the corporations that owned the remaining 50 percent interest in the assets that gave Vornado full ownership of the H Street portfolio.Greater Washington, D.C., continues to be one of the stronger apartment markets in the country and is expected to continue to thrive this year, according Marcus & Millichap Real Estate Investment Services’ 2008 National Apartment Report. The average vacancy rate will likely rise just a bit due in part to an increase in inventory, but it is on target to remain significantly low at a projected 5 percent. In Northern Virginia, the vacancy rate is expected to increase, too, but only to 5.4 percent.Headquartered in Paramus, N.J., Vornado is a fully integrated REIT that holds the distinction of being one of the largest real estate owners and managers in the country. Its portfolio of various property types totals 118,000 square feet, including 16 million square feet of Toys “R” Us real estate. Company stock opened at $81.46 today.