Beech Street Provides $152M Fannie Mae Loan for Maryland Apartment Complex

Beech Street provided a Fannie Mae loan to Archstone for the refinancing of a Maryland multi-family property.

It’s been a busy few weeks for both Archstone Inc., an apartment investor and developer that recently announced plans to go public, and Beech Street Capital L.L.C., a lender that provided a $152 million Fannie Mae loan for Archstone to refinance a Maryland multi-family property.

Since Archstone announced in August that it had filed plans to raise $100 million in a public offering of its common stock, there has been a flurry of activity for the Englewood, Colo.-based firm including the refinancing of the loan for Archstone Wisconsin Place, a 432-unit apartment community in Chevy Chase, Md. The apartments, built in 2008, are located in Wisconsin Place, a mixed-use development with offices and retail.

Marsha Baumgarner, a Beech Street executive vice president and chief legal officer, said it was the first time Archstone had used the new Fannie Mae loan documents and that the firm “worked closely with the borrower to help navigate the new provisions and negotiated with Fannie Mae to accommodate the borrower’s needs.”

Archstone has recently acquired two multi-family properties and started construction of two more in California. It has also disposed of at least three multi-family developments.

This week, the firm announced that an Archstone partnership had acquired Grosvenor Tower, a 237-unit community in the North Bethesda, Md., submarket of Washington, D.C. The high-rise complex was bought from Greystar Real Estate Partners L.L.C. for $75.5 million and will be renamed Archstone Grosvenor Tower. It is located within walking distance of the Grosvenor Metro Station and is also near major highways, including the Capital Beltway.

Archstone’s second recent acquisition is also located near public transportation. An Archstone- sponsored partnership purchased Station 250, a 285-unit apartment community in Dedham, Mass., outside Boston, for $94.25 million from a subsidiary of BVT Equity Holdings Inc. The luxury apartment community will be renamed Archstone Legacy Place because of its location across the street from the Legacy Place lifestyle center. It is also located next to the Dedham Corporate Center MBTA station.

A 175-unit apartment community called Archstone Parkside is now under construction in Emeryville, Calif., in the San Francisco Bay Area. It is being developed by Archstone in a joint venture with Prudential Real Estate Investors and is located a few miles from Archstone Berkeley on Addison, 94-unit building in Berkely, Calif., where construction started in July.

“We are excited to begin the development of two new, high-end apartment communities that will help meet the constantly growing demand for rental housing in the Bay Area,” said R. Scot Sellers, Archstone CEO.

Three recent dispositions occurred on the West Coast. Kennedy Wilson, an international real estate and services firm, said it bought Archstone Long Beach Harbor, a 160-unit multi-family community in Long Beach, Calif., for $33.5 million with an unnamed investment partner. Waterford Place in Woodinvlle, Wash., a 360-unit apartment complex owned by Archstone, was acquired by Grosvenor Americas for $58 million, according to the Puget Sound Business Journal. Late last month, the Ventura County Star newspaper reported that Archstone had sold Archstone Thousand Oaks, a 191-unit apartment complex in Thousand Oaks, Calif.

Archstone isn’t the only client Beech Street Capital has been arranging multi-family loans for in recent weeks. The Bethesda, Md.-based multi-family lender announced last week that it had provided $23.1 million in Fannie Mae conventional loans to refinance a four-property portfolio with two apartment communities in Tucson, Ariz., and one each in San Antonio, Texas, and Sussex, N.J.  The unnamed borrower received fixed-rate loans with 10-year and seven-year terms with interest-only components. David Cohen and Israel Shubert of Meridian Capital Group, L.L.C. originated the transaction, according to Beech Street. In another deal with Meridian Capital Group, Beech Street provided Azure Partners L.L.C. a $26.3 million Freddie Mac Capital Markets Execution loan for the acquisition of The Landings at Pine Lake, a 520-unit apartment complex in Lindenwold, N.J. Abe Hirsch and Moshe Majeski originated the transaction for Meridian Capital.