Chicago, Illinois, November 1, 2010 – Wrightwood Capital High Yield Fund II announced the closing of a $23,000,000 preferred equity investment for the recapitalization and renovation of the Empirian Village Apartment complex with Fieldstone Properties. Constructed in phases from 1968 to 1973, the 2,877 unit garden style apartment complex is located on 155 acres in a park-like setting just inside the Washington, DC beltway. As part of the $15 million renovation, the complex will be renamed Franklin Park at Greenbelt Station. Concurrent with this equity investment, Freddie Mac provided a 7-year, $241,500,000 first mortgage.
“There is a meaningful shortage of good quality workforce housing in Washington, DC, and properties such as Empirian Village are an important part of filling the gap. Fieldstone’s plan to update and improve this asset will go a long way towards addressing the markets need for housing,” commented Frank Sullivan, Senior Regional Director, Investments for Wrightwood Capital.
A 2009 ULI report on housing in Washington DC for households making 60% to 100% of the area’s median income indicates there is an undersupply of 40,000 units. (“Priced Out; Persistence of the Workforce Housing Gap in the Washington, D.C. Metro area”)
Dan Hartman, Senior Regional Director, Investments, added, “Wrightwood Capital and Fieldstone Properties have a history of working together. This transaction includes a significant renovation plan that will be challenging to manage on a property of this size. Thanks to Fieldstone’s expertise in managing and improving properties of this vintage and scale, Wrightwood has the highest level of confidence in the future of this property.”
Wrightwood Capital’s High Yield Fund II is a $243 million commercial real estate debt fund focused on multi-family, office, retail and industrial transactions. The fund provides highly customized transitional capital to middle market real estate operators focused on value-add assets.
Wrightwood Capital has made over $5.4 billion of loans and investments since 1997, and currently manages $2 billion in assets. Smart commercial real estate operators and investors have learned to depend on Wrightwood Capital’s views on risk, credit and capital flows, as well as its ability to custom-tailor debt and equity structures to fuel their real estate business plans.