Spira Equity Partners has secured $36 million in financing to acquire Lafayette Apartments, a 340-unit affordable housing rental property in Alexandria, Va., Commercial Observer has learned.
Capital One provided a Freddie Mac loan to the Vancouver-based Spira for the deal, providing a seven-year floating-rate loan, featuring three years of interest-only payments.
The seller was Jonathan Rose Companies, which acquired the property in 2016 through its Rose Affordable Housing Preservation Fund. Under its ownership, the apartment complex’s existing community room, computer lab and fitness room were updated and achieved Enterprise Green Communities Certification.
Located at 7136 Groveton Gardens Road, the Lafayette Apartments are available to low-income residents earning less than 60 percent of the area median income, which is currently $105,450 for a household of four.
“With the demand for affordable housing far outpacing supply, we are focused on investing in long-term preservation that ensures stable housing for our residents,” Robert Lee, managing partner at Spira Equity Partners, said in a prepared statement.
The Capital One team was led by Evan Williams and Harrison Hunt. Spira is a repeat Capital One customer and together with Capital One, has closed on more than $400 million of debt.
“Amidst macro headwinds in the broader multifamily sector, Capital One worked alongside Spira and Freddie Mac to arrange acquisition financing that supports the long-term preservation goals for this property and also mitigated higher interest rates,” Williams, agency finance senior vice president for Capital One, said in a prepared statement.
Keith Loria can be reached at Kloria@commercialobserver.com.