M&T Realty Capital Corporation (M&T RCC) is pleased to announce the closing of a $49.8 million bridge acquisition loan for Varsity on K, a 197-unit multifamily property located in the highly sought-after Foggy Bottom neighborhood of Washington, DC, adjacent to George Washington University. 

The financing will facilitate the acquisition and stabilization of the property by HH Fund, a repeat M&T RCC client and experienced owner-operator of student housing and multifamily assets throughout the United States. 

“We believe Varsity on K represents a compelling opportunity to acquire a well-located asset in one of Washington, DC’s most established neighborhoods and create value through our hands-on operating platform. We remain bullish on DC and believe we are investing at an attractive point in the cycle. M&T RCC has been a great partner to HH, and we especially appreciate their ability to understand our investment strategy and provide an attractive, flexible bridge financing solution tailored to the needs of this transaction. We value the relationship we have built with the M&T RCC team and look forward to working together on future opportunities,” said Lee Chen, Managing Director of HH Fund.

Originally developed in 1985 and later repositioned as a furnished multifamily community, Varsity on K benefits from a premier location within walking distance of George Washington University, major employment centers, transit and neighborhood amenities. The property features 197 apartment units and offers residents a range of lifestyle amenities, including study spaces, fitness facilities and community gathering areas.

"This transaction highlights M&T RCC's ability to provide creative bridge financing solutions for experienced sponsors pursuing value-add acquisition opportunities in strong urban markets," said M&T RCC Senior Vice President Dan Lynch who originated of the transaction. "HH Fund has built an impressive portfolio with over $1 billion in assets, and Varsity on K presents a compelling opportunity to improve performance, enhance occupancy and create long-term value. We are proud to deepen our relationship with the sponsor through this second transaction together."

The transaction represents M&T RCC's second closing with HH Fund, following the financing of The Lanes at Union Market in Washington, DC. M&T RCC continues to support the sponsor's growth strategy through bridge and agency lending solutions.