The Goldstar Group has secured an $84 million loan for the development and stabilization of Residences at East Church in Maryland. ACRES Capital Corporation provided the loan for the $112 million, a 350-unit multifamily community in Frederick, Md.
The loan was arranged by Jamie Butler of Walker & Dunlop. The financing was initiated by Drew Miller of ACRES’ New York office. The financing’s additional specifics weren’t made public.
After getting all necessary clearance from Frederick municipal officials, Goldstar began building at the property at 605 E. Church St. in October. According to Brodsky, Goldstar paid $7 million to Frederick Health Hospital in 2020 to buy the 14.81-acre vacant land.
Additionally, the developer is expected to set aside approximately 3 acres of property for a public park.
Features of the Residences at East Church
The project will consist of five buildings, each four stories tall. There will be a total of 350 apartments and 525 parking spaces. The clubhouse, swimming pool, and fitness center will be among the community’s attractions.
Furthermore, the building will include premium exterior, interior, and amenity finishes. This will place it at the top of the area’s competitive multifamily market. A 15-minute stroll will get East Church residents to downtown Frederick, which has a variety of fine eating options, specialty breweries, and unique coffee shops. Washington, D.C., and Baltimore. Maryland is both close to the site.
Frederick County is home to many illustrious employers, including the Fort Detrick military biotechnical research facility, and has established itself as a pioneer in the bioscience and life science industries.
Expectations for the project
The project is anticipated to be finished in November 2024. In a situation with rising interest rates, it was undoubtedly difficult.
“We were on the 221(d)(4) (finance) path with HUD when a number of variables, including the present interest rate environment, forced us to change course,” said Bethesda CEO Michael Brodsky. She added that Frederick is a market that is expanding because of the recent expansion in the biotech/lab sector and the area’s closeness to both Baltimore and Washington.