ARLINGTON, VA. — CBRE has arranged a $161.5 million Freddie Mac loan for the refinancing of Crystal House, an 825-unit apartment community in Arlington, just south of Washington, D.C.
Crystal House is located in the Crystal City neighborhood near Ronald Reagan Washington National Airport and the site of Amazon’s future second headquarters. The property was originally built in 1965 and renovated in 2017.
Crystal House offers studio, one-, two- and three-bedroom units that are furnished with stainless steel appliances, hardwood-style flooring, granite breakfast bars and walk-in closets. Select units also feature private balconies.
Communal amenities include two rooftop decks with lounge seating, TVs and fireplaces, a clubhouse with billiards and a cyber lounge, pool with cabanas and a sundeck, fitness center, convenience store and outdoor picnic areas. The property also offers valet dry cleaning and 24-hour concierge services.
Michael Sherman, Irene Lu, Michael Riccio, Susan Larkin and Anna Pfau of CBRE originated the loan. The borrower was a partnership between Roseland Residential Trust, which is a subsidiary of New Jersey-based REIT Mack-Cali Corp., and an investment fund advised by UBS Realty Investors LLC.
“This is among the largest multifamily refinancings to occur completely during the COVID crisis, as lenders have been highly concerned about rent collections and the impact of the resulting economic shutdown,” says Sherman. “Valuation, pricing and loan structures have been all over the spectrum. Compounding the valuation complexity was a December 2019 rezoning and site plan approval that almost doubled the existing density and significantly impacted the assessed value.”
— Taylor Williams