JLL Capital Markets announced that it has secured a $59 million financing for Ellipse Urban Apartments, a 287-unit luxury apartment complex in Hampton, Virginia.
JLL worked on behalf of the borrower, a joint venture between Madison International Realty and The Accend Companies, in arranging the floating rate loan through funds managed by affiliates of Fortress Investment Group.
Ellipse Urban Apartments, located at 2001 Commerce Drive, offers easy access to I-64, I-664 and Rte-60, while being just 15 minutes from the Hampton Roads Bridge-Tunnel. The community sits near prominent retailers, restaurants and entertainment venues including Peninsula Town Center and the Hampton Coliseum. Its location appeals to military personnel, with approximately 46% of current tenants leading military professions due to proximity to Langley Air Force Base and Naval Station Norfolk.
Hampton continues to be a strong market with a diverse economy anchored by aerospace, defense facilities, higher education institutions and major medical centers. The Hampton multifamily market has seen significant 5.5% year-over-year rent growth since 2019 while maintaining consistent vacancy rates despite new supply.
Built in 2021, Ellipse Urban Apartments is a Class A luxury community consisting of seven four-story buildings. The property features studios, one-, two- and three-bedroom units. The units feature open-concept floorplans with expansive floor-to-ceiling windows, chef-inspired kitchens with granite countertops, designer contemporary LED lighting, in-unit washer/dryer, walk-in closets and plank wood flooring.
JLL Capital Market’s Debt Advisory team representing the borrower was led by Senior Managing Directors Steven Klein and Jim Cadranell, Senior Director Reina Abboud and Associate John Cumming.
“Ellipse Urban Apartments represents a unique multifamily investment opportunity due to its high proportion of military personnel within the tenant base and specialized Home 4 Now program offering furnished units with flexible lease terms,” said Klein. “This financing will allow the ownership group to execute their business plan of expanding the Home 4 Now inventory from 11% to 25% of total units, which command significant rent premiums.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
