Needham, MA (3/31/05) – Potomac Realty Capital, LLC (“Potomac”) has announced the funding of a $6.5 million  mezzanine loan for the renovation and return of investor capital on a 600 unit multifamily complex located in Hyattsville, Maryland (the “Property”).

The 36 month financing allows for 100% of the borrower’s invested capital to be returned and provides additional capital for improvements at the Property.  Dan Palmier, President & CEO said, “Potomac was able to customize the financing to meet the borrower’s needs and close it in less than 30 days from application. We structured for the borrower a low cost capital alternative for the renovation repositioning the Property while giving the borrower the ability to “un-trap” its equity, during the lockout period on its first and second mortgages.  The Loan was additionally structured to provide the borrower with the ability to upsize to $14 million if and when the borrower desired.  All this was done at an interest rate of 575 bps over the 30 day Libor index.  Once the lockout period has eclipsed, Potomac will help the borrower acquire a new first mortgage, lowering the overall cost of the Property’s debt.”

Potomac Realty Capital is a full-service provider of customized financing for bridge, mezzanine, preferred equity and permanent real estate loans. Potomac was formed to offer innovative financing solutions for various types of real estate deals, including those that don’t meet strict underwriting guidelines.   The company is based in Needham, MA.

Media Contact: Caroline Murphy, 781-972-0170, ext. 278