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Monday, 07 March 2011

Rreef Venture Sold 2,580-Unit Multifamily Portfolio

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Commercial Real Estate Direct Staff Report

The 2,580-unit multifamily portfolio in the Washington, D.C., area that was recently acquired for $460 million was sold by a venture led by Rreef Funds and backs $410 million of securitized debt that matures in December.

A venture of Dune Real Estate Partners and property operator Pantzer Properties bought the portfolio of eight properties in suburban Maryland and northern Virginia last week.

The properties' debt includes $147 million that is securitized through Morgan Stanley Capital I Trust, 2007-HQ13, $138.5 million securitized through Morgan Stanley 2007-HQ11 and $124.5 million securitized through Morgan Stanley 2007-HQ12. The HQ-13 loan has a 5.49 percent coupon, while the other two loans have 5.47 percent coupons. All three require interest-only payments.

It couldn't be determined whether the loans were paid off as a result of the sale.

The portfolio's six Virginia properties are the 532-unit Barton's Crossing in Alexandria; the 408-unit Carlyle Station in Manassas; the 134-unit Glen at Leesburg in Leesburg; the 467-unit University Heights in Ashburn, the 283-unit Village at McNair Farms in Herndon, and 328-unit Lionsgate, also in Herndon.

The Maryland properties are the 218-unit Fox Run in Germantown and the 210-unit Watkins Station in Gaithersburg.

Rreef, an investment management affiliate of Deutsche Bank, ventured with Bainbridge Cos. of Wellington Fla., to buy the portfolio in 2006 from Morgan Stanley Real Estate, which picked the properties up earlier that year as part of its purchase of Town and Country Trust.

The portfolio's securitized debt is current, but all three loans were moved to special servicer J.E. Robert Cos. last June when the Rreef venture said it would not dip into its own pockets to fund capital improvements at the buildings.

The portfolio through the first quarter of last year was on pace to generate $23.6 million of full-year net cash flow compared to the securitized loans' $22.65 million debt service requirement, according to service data compiled by Realpoint.

The loans were underwritten with the projection that the properties would generate more than $25 million of annual cash flow.

Comments? E-mail John Covaleski or call him at (267) 247-0112, Ext. 208.


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Additional Info

  • Syndicate to Realpoint: No
  • Sector: Multifamily
  • Subject: Property Acquisitions (ACQ)
  • Company: Rubenstein Co., The (Phila.)
Read 679 times Last modified on Tuesday, 08 March 2011

Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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