WASHINGTON, DC – A joint-venture partnership between RSE Capital Partners (“RSE”), Northpoint Realty Partners (“Northpoint”) and Persimmon Capital Partners (“Persimmon”) announced that it has closed on the refinancing of The Mark Apartments, a nine-story high-rise apartment complex in Alexandria, VA. Walker & Dunlop arranged the equity recapitalization and the Freddie Mac senior debt financing.
The Mark is a high-rise apartment complex containing 227 units that was originally built in 1965 as apartments, and then converted into a hotel in 1971. Northpoint and Persimmon purchased the building in 2015 and converted it back into apartments, and are now implementing a unit interiors renovation plan.
The Mark is situated in a prime transit-oriented location close to the Van Dorn Street metro and with easy access to highways and within a close drive to grocery and retail options, as well as the amenities offered by downtown Alexandria. The Mark is located across from Landmark Mall, a 970,000 square foot mall owned by the Howard Hughes Corporation, and should stand to benefit from its planned redevelopment.
Walker & Dunlop’s Jamie Butler arranged the Freddie Mac debt and preferred equity investment from RSE Capital. “We are excited to be able to bring together an accretive capital stack to enable our clients to stabilize this conversion of an obsolete hotel into workforce apartments to help meet the overwhelming demand for affordable housing in the submarket” said Mr. Butler.
RSE is actively looking to increase its exposure to affordable housing assets in Virginia and the Carolinas, and feels that these markets present a strong opportunity driven by solid demographic trends and multifamily market fundamentals. Population growth has been growing at a high rate and is projected to continue in the short- and long-term.
For more information about RSE, please contact Max Kirschenbaum, Head of Business Development, at max@rsecap.com.
About RSE Capital Partners: RSE Capital Partners uses discretionary funds to provide innovative capital solutions for top-quality real estate sponsors. RSE currently is invested in $1Bn+ of commercial real estate and is on track to deploy $300M+ in 2018. For more information, please visit: rsecap.com.
About Northpoint Realty Partners: Northpoint Realty Partners is a real estate development and investment firm that specializes in land, commercial and residential projects. The firm is dedicated to delivering high quality, sustainable business environments and superior management to its institutional and private sector clients and investors. Northpoint Realty Partners has successfully executed its development and investment strategy in the Mid-Atlantic market by employing highly skilled and experienced professionals from a wide range of disciplines including acquisition, finance, development, leasing, and management. The firm’s partners have developed and invested in more than 3 million square feet of commercial property and more than 3,000 residential units in the Mid-Atlantic region. For more information, please visit: northpointrp.com.
About Persimmon Capital Partners: Persimmon Capital Partners was founded in 2008 and is a diversified alternative investment company focused on direct, private investments primarily in private equity, real estate and alternative asset classes. A captive and fully discretionary capital base gives Persimmon the flexibility to invest in a wide variety of structures with both short and long-term investment horizons. As an active, growth-oriented investor, Persimmon looks to partner with strong management teams to build sustainable value and generate superior risk adjusted returns. For more information, please visit: persimmoncap.com