A-Z arranges $485m to help Stellar transform properties

Real Estate Weekly, March 28, 2007

The Ackman-Ziff Real Estate Group has arranged $485,000,000 in financing for two multifamily complexes located in Silver Spring, MD.

The firm arranged a $270,000,000 first mortgage for The Enclave, a 1,119-unit apartment complex with three 20-story towers situated on 26 acres in Silver Spring, MD.

The borrower is Stellar Management, an owner-operator of more than 19,000 apartment units and three million square feet of office space in the metro New York, Washington D.C., San Francisco and South Florida markets.

Stellar Management is the pre-eminent renovator of large, gateway-market rental assets in America with currently $600 million of rehab ongoing in their portfolio.

Since they acquired the property in 2003, Stellar has spent $14.1 million in base building improvements and $13.8 million in unit renovations. The borrower has budgeted to spend an additional $20.5 million in base building improvements and $14.5 million in unit renovations over the next 2 years, bringing the total amount spent to $63 million, or $56,200 per unit.

When the renovations are complete, The Enclave will be the premiere rental community in Silver Spring with amenities that include a washer/ dryer in every unit and a 13,000 s/ft recreation amenity center with an Olympic-size pool and fitness center.

In 2003, Ackman-Ziff represented the Borrower for the acquisition financing of The Enclave.

Ackman-Ziff also arranged a $215,000,000 first mortgage for Georgian Towers, an 890-unit apartment complex with two 14-story towers situated in the heart of the Silver Spring, MD central business district for Stellar Management, which acquired the property in 2004. Since then, Steller has spent $11.25 million in base building and unit renovations and has budgeted to spend an additional $20.8 million in base building improvements and $14.3 million in unit renovations over the next two years, bringing the total amount spent at Georgian Towers by the borrower to $46.4 million or $52,000 per unit.

When the renovations are complete, Georgian Towers will be the finest rental property in the Silver Spring CBD with amenities that include a washer/dryer in every unit, fitness center, business center and a rooftop swimming pool and sundeck.

In 2004, Ackman-Ziff represented the Borrower for the acquisition financing of Georgian Towers.

"This ensures the completion of the redevelopment of these two prominent Metro DC rental assets. My thanks to Ackman-Ziff and Deutsche Bank for their hard work and flawless execution," said Rob Rosania, CEO of Stellar Management.