Phillips Realty Capital Structures $ 141.8 Million Funding for 360-Unit Luxury Apartment Community Near Amazon Headquarters in Virginia

BETHESDA, MD – Phillips Realty Capital announced that its client, Erkiletian Development Company, has entered into a $ 141,789,000 bridge loan from global investment firm KKR to recapitalize The Sur, a community of upscale luxury apartments A of 360 units recently delivered to the National Landing submarket in Arlington, Virginia, near Amazon headquarters and the Virginia Tech innovation campus in Potomac Yard.

Phillips Realty Capital Managing Director Adam Bieber led the transaction and was assisted by Malcolm Shaw and Bill Wrench. The loan was structured as a three-year, non-recourse, interest-only, bridge loan with extension options. The proceeds will be used to recapitalize the construction asset pile, with reserves financing additional rental costs.

Bieber explained, “Capital markets have been inconsistent and turbulent. The strong sponsorship, exceptional quality of real estate and the continued strength of the Greater DC market resulted in an extremely competitive bidding war for this project.

Inspired by Big Sur, a rugged stretch of central California’s coast, The Sur blends durable and rustic features to create a warm and sophisticated atmosphere with a modern twist. Located on a 1.67 acre site at 3400 Potomac Avenue, the 12-story luxury community offers modern unit interiors, state-of-the-art amenities and abundant outdoor living. Steps from Amazon’s new headquarters and Virginia Tech’s innovation campus, the property includes 16,503 square feet of retail space and 25,000 square feet of amenities with unobstructed views of the Potomac River and downtown DC Amenities include an outdoor “Sur” park with a grove filled with “trees” for the via, outdoor craft nests for lounging, fire pits, abstract sequoias with hanging chairs, zen garden, center fully equipped fitness and wellness facility, yoga meditation module, two beautiful rustic yet modern halls with air purification green wall, authentic surfboard setup for the Northern California surfer, animal spa lounge, conference center and rooftop with tranquil water feature and organic-style cabanas. The Sur is located in the National Gateway mixed-use development, a 40-acre portion of Potomac Yard that includes residential, office and retail assets served by the planned Potomac Yard subway station.

“KKR is focused on finding great opportunities with the best sponsors in our target markets. We are delighted to be the lending partner at this stage of The Sur’s transition from a completed project to a stabilized asset, ”said Adam Simon, KKR Real Estate Team Director. “Sur’s characteristics and sponsors meet our high bar for lending in this environment, and we appreciate the thoughtfulness and expertise of Phillips Realty Capital in working with us to structure the optimal debt package for this asset.” Loan financing is provided by KKR Real Estate Finance Trust and KKR Opportunistic Mortgage Fund.

“Our family greatly appreciates the collaborative efforts of Phillips Realty Capital and KKR to provide the right loan to The Sur,” said Stefanie Erkiletian, President of Erkiletian Development Company. “We also want to express our gratitude to our construction lender, partners, suppliers and consultants who have all played a pivotal role in helping us get to this moment. We put all of our hearts into the design and development of this heritage asset that we look forward to sharing with our community for generations. “

“The Sur is an outstanding achievement for Erkiletian and I couldn’t be more proud of their hard work,” said Bieber. “As a family business, Erkiletian designs buildings for long term ownership and treats its residents like family and it shows. We appreciate the opportunity to work as Ambassador on such an important mission, and we are grateful to all parties who have worked so tirelessly throughout the process during the pandemic to achieve this result.

Bieber added: “To our lending partners at KKR – well done! Their team provided a seamless process and execution, and we look forward to the next opportunity to collaborate in the near future. “

ABOUT PHILLIPS REALTY CAPITAL: Phillips Realty Capital is a leading commercial real estate finance company in Washington, DC, structuring approximately $ 2 billion in debt and equity transactions annually and managing a $ 2.8 billion loan portfolio on behalf of 25 institutional investors. Founded in 1933 and still privately owned, Phillips has a proven track record of working with leading property owners, lenders and investors to structure the most competitive deals available in the market. With offices in Bethesda, Richmond, Charlottesville and Alexandria, dedicated teams of experts provide reliable financial analysis, accurate valuations and in-depth knowledge of capital markets to structure capital stacks that leverage debt and equity financing. actions to maximize the value of clients’ assets. For more information visit

ABOUT THE ERKILETIAN DEVELOPMENT COMPANY: For over 50 years, Erkiletian has developed, built and owned properties that have earned the company a reputation as one of the most trusted names in the Washington DC real estate and business community. Today, its portfolio of residential, commercial and mixed communities is proof of its commitment to creating enjoyable and efficient environments that flourish and become desirable destinations. Founded by Myron (Mike) P. Erkiletian, the firm remains a family business guided by the principles he put in place: develop, build and invest in properties that define a region; to employ responsible and forward-thinking construction and management practices; and to be committed to integrity in every relationship we establish. For more information visit

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