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Duxbury Financial LLC Provides $68,350,000 in Financing for Park Center

Mixed-Use Project Set to Revitalize Northern Virginia's Newest Town
July 3, 2007

DUXBURY, Ma. — Duxbury Financial, LLC (Duxbury) recently closed a $56,000,000 non-recourse construction loan and $12,350,000 in tax exempt bonds to finance the development of Park Center, a 274-unit luxury apartment community with 45,000 square feet of supporting retail, located steps from the Manassas Park VRE Station in Manassas Park, Va. Through an innovative debt structure negotiated with LaSalle Bank and Lehman Brothers, Duxbury achieved a low-cost capital structure maximizing leverage at 90% of cost.

Duxbury Financial LLC Provides $68,350,000 in Financing for Park Center Press Release Image

City Center

Duxbury structured the construction financing with a five-year overall term and executed a five-year forward interest swap on ten-year Libor at an all-in rate of 5.61% which, based on the current market, is in the money by approximately 20 basis points. Duxbury underwrote and acted as the placement agent for the $12.35 million tax-exempt bond issue, which was eventually sold to Lehman Brothers.

Structured with a 40-year term, the bonds mark the first Community Development Assessment Bond Issuance in the State of Virginia to achieve the maximum term. When refinancing the construction loan, Duxbury engineered a debt service repayment schedule reducing the payment on the bonds to approximately 1.87% interest-only, allowing the project to maximize both the construction loan proceeds and bond financing.

Park Center will deliver much-needed retail, commercial, and residential opportunities to downtown Manassas Park, the latest city to be incorporated by the Commonwealth of Virginia. Future phases of the master plan will include additional rental units, for-sale townhouses, a grocery store, and other in-line retail space.

Located adjacent to the Manassas Park VRE stop, Park Center will provide residents with a commuter-friendly urban environment boasting convenient public transportation to Northern Virginia and Washington, D.C. Mixed-use and transit-oriented communities like Park Center are on the forefront of an innovative national real estate trend to combat urban sprawl.

The City of Manassas Park and developer Clark Realty Capital, L.L.C. of Arlington, Va. are working together to make the vision of the City's town center a reality. Construction began in spring 2007, and the first phase of the project is scheduled for a Fall 2008 completion.

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About Duxbury Financial

Duxbury Financial, L.L.C. is an investment bank specializing in real estate finance. The group has a long history of closing complex transactions for both commercial and residential investments and sets trends with new, innovative financial structures in unique market segments such as privatized military housing. To-date, Duxbury has closed over five billion dollars in financings.

About the City of Manassas Park

Manassas Park is not only Northern Virginia's newest city; it's a city on the move! Many exciting things are happening, including a new city center, renovation and reengineering of city facilities, and a focus on developing family-friendly retail businesses. Manassas Park is large enough to provide big city services, but small enough to value each contribution from every citizen and business owner. Come get to know us - call us home! In Manassas Park, there's a place for everyone, and everyone has the opportunity to make a lasting contribution.