Armada Hoffler Properties has acquired the high-end Residences at Annapolis Junction in greater Baltimore in an off-market deal.
The Virginia Beach-based real estate investment trust secured nearly $84.4 million through Walker & Dunlop to finance its purchase of the 416-unit complex at 10125 Junction Drive in Annapolis Junction, an unincorporated area about 16 miles southwest of Baltimore that was originally established around 1650 as a rail junction.
Armada Hoffler had previously served as the mezzanine lender to developer Somerset Construction Co. and is now taking over the stabilized property, one of several mezzanine investments the firm had with discounted purchase options. The permanent financing replaces the existing debt previously provided through Walker & Dunlop's bridge lending program.
Dee McClure and Katie Runyan led the Walker & Dunlop team in arranging the 10-year Freddie Mac financing that includes a three-year, interest only period.
"The bridge loan we provided in 2018 allowed ample time for stabilization, and the Freddie Mac transaction provided financing to Armada Hoffler for an off-market acquisition," McClure said in a statement.
Bethesda-based Somerset completed development in 2017 on The Residences, a five-story complex that serves as the residential component of the Annapolis Junction Town Center.
The property consists of studio, one- and two-bedroom apartments ranging from 520 to 1,629 square feet. The highly-amenitized development offers residents on-site access to a two-story community room with a 1,732-square-foot fitness center and locker rooms; a 29-seat multi-media center; an adjacent kitchen and bar; a billiards room; a business center with conference area; a fireplace; and a pet spa with pet wash room and dog run.
The LEED Gold development also features a saltwater pool with sunning decks, cabanas, outdoor living areas and multiple grills, fountains and gazebos.
The first transit-oriented development in Howard Country, Annapolis Junction Town Center stretches 19 acres on a site adjacent to the Savage MARC station with frontage on MD Route 32 and roughly 10 minutes from Baltimore-Washington International Airport.