$21M in Financing Facilitates Estates at Horsepen's Race to Completion

RICHMOND, VA- Development of The Estates at Horsepen has taken a positive leap forward with the recent placement of $21 million in financing for the project. John B. Levy & Co. arranged for the funding from a prominent pension fund on behalf of property developer New Apartments LLC. The deal is in the form of a 10-year term permanent mortgage, with amortization taking place over a 25-year period. Estates at Horsepen is currently in the midst of construction and will provide 257 luxury townhouse-style apartments when all is said and done. Strategically located in the city's West End area near a sprawling 2 million-sf office district known as the Glenside Interchange, Estates at Horsepen will carry the address of 6740 Dartmouth Ave. More to the point, the property will be just a hop-skip-and-a-jump from the new Philip Morris USA headquarters, which will bring in about 450 employees to the former 250,000-sf Reynolds Metals plant. "There are two key elements which will ensure the success of this project, the forward commitment for financing, and the location of the site--which you cannot beat," Levy & Co. president John B. Levy explains. "Rates are at a 45-year low, there is no guarantee that they will stay at this level. We structured a forward commitment, which secures the rate over the long term, guaranteeing them a lower payment as rates rise, which we know they will do."

In addition to its apartments ranging in size from one-bedroom to three-bedroom units, the Estates at Horsepen will feature a 6,000-sf clubhouse, movie theater, state-of-the-art fitness center, swimming pool cabana with an adjoining entertainment area, demonstration kitchen and business center. "The first building is scheduled to open by mid-August," Estates at Horsepen manager Tricia Foreman tells GlobeSt.com. "There will be a total of 38 buildings, and we're phasing them in at about one a week. The community will be completely done in April of 2004."

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