Test Feature Story
TEST
Closed. $2.4 Billion Credit Facility
Fidelity National Title and Chicago Title Partner to Insure $2.4 Billion Southern Management Portfolio During Covid-19 Lockdown
WASHINGTON, D.C. May 5, 2020 - Fidelity National Title Insurance Company and Chicago Title Insurance Company, two of the nation's leading providers of title insurance for commercial real estate, combined the forces of their Washington D.C. based National Commercial Services offices to close and insure a $2.4B Fannie Mae Credit Facility refinance of 67 multifamily properties (22,439 units) in Maryland and Virginia in late April. The borrower, Southern Management Corporation, is the largest privately-owned residential property-management company in the Mid-Atlantic region.
“The creative teamwork, the can-do attitude, and unparalleled expertise of these title professionals was remarkable. Their unwavering commitment was critical to getting this complex deal to the finish line under adverse conditions,” said Suzanne Hillman, President and CEO of Southern Management Corporation. “Every nuance of this transaction was approached with a thoughtful analysis to build the best possible teams. The partnering of Chicago Title and Fidelity Title’s DC NCS teams was unprecedented and seamless. They are truly the best of the best.”
Fidelity National Title DC based NCS team was led by Candace Chazen, SVP and Director of Client Relationships, and by Sarah "Sally" Webb, SVP and Major Transactions Counsel. Chicago Title DC based NCS team was led by Charlotte Troup Leighton, SVP, Director of Business Development and by Eric Taylor, SVP, Senior Counsel. Internal production was managed by Fidelity National Title’s Joanne Leong, VP, Commercial Counsel, and Chicago Title's Debbie Bond, VP, Major Transactions Officer.
“It was our honor to be selected by Southern Management Corporation as the title team for this important transaction. Our collaboration allowed us to bring our top industry professionals and financial strength together to close and insure this substantial and complex transaction,” shared Candace and Charlotte. "We are proud of the collective efforts of our outstanding teams who adapted quickly following COVID-19 stay-at-home orders, adding a whole new level of complexity to closing a deal of this size."
Fidelity National Title, NCS, DC and Chicago Title, NCS, DC are members of the Fidelity National Financial family of companies and the largest group of title companies and title insurance underwriters. The FNF brands collectively issue more title insurance policies than any other title underwriter in the United States.
Chris Naughten
Senior Vice President, NCS Operations Manager
Fidelity National Title Insurance Company | National Commercial Services
Member of the Fidelity National Title Group, the nation’s largest provider of title insurance.
1620 L Street NW, 4th floor
Washington, DC 20036
Direct: (202) 312-5113 | Cell: (301) 758-3633
cnaughten@fnf.com |
http://dcncs.fntic.com/
DC Tax Increase (10/19)
Beginning October 1, 2019, only the latest version of the FP-7/C (marked as revised 8/2019) may be submitted to the Recorder of Deeds. All prior versions of the FP-7/C will be obsolete as of October 1, 2019, and will not be accepted.
Revisions to the FP-7/C include:
- Revising Section B to remove extraneous or duplicative information
- Clarifying that commercial properties subject to the new tax rates are class 2 properties for real property tax purposes
- Clarifying the applicability of the new commercial tax rates to non-class 2 property when there is immediate prior common ownership of the commercial and non-commercial property
Please see the OTR tax notice regarding the revised form FP-7/C:
OTR Tax Notice 2019-06
The new form FP-7/C and FP-7/C instructions are now available on the Recorder of Deeds' website:
ROD1 Real Property Recordation and Transfer Tax (Form FP 7/C)(For recordings beginning October 1, 2019)
REMINDER: recordation/transfer tax increases to 2.5% on commercial properties starting October 1, 2019.
DC Tax Increase Update (7/19)

In a joint meeting with DCLTA and AOBA, D.C. Recorder of Deeds Ida Williams, and Robert McKeon (Deputy Chief Counsel with OTR) discussed the recently enacted Recordation and Transfer Taxes Amendment Act of 2019, which increases the recordation and transfer taxes applicable to commercial properties in the District of Columbia.
Background and Meeting Discussion
Summary of New Recordation and Transfer Taxes Amendment Act of 2019:
Increased recordation and transfer tax rates will be applied to deeds and deeds of trust on Class 2 commercial properties starting October 1, 2019. The new law will increase the combined effective rate from 2.9% to 5% on transactions valued over $2 million. The new 5% rate will also be applicable to economic interest transfers valued over $2 million. (For the enacted legislation, see the Fiscal Year 2020 Budget Support Act of 2019, Title VII, Subtitle C [beginning on p. 95] Bill #B23-0209,Act #A23-0092.)
Summary of Meeting:
The purpose of the meeting was to discuss the practical implementation of the new law, in particular its applicability to mixed-use buildings or to lots contained within mixed-use buildings. This may include apartment buildings listed as Class 3 but which contain a commercial component. OTR stated that the new tax rates would apply to any non-homestead property with a consideration of $2 million or more if any portion of the building in which the lot being conveyed or secured is located contains a commercial component. The basis for making this determination will be the certificate of occupancies for the building. Further clarification on the applicability of the new rates to mixed-use Class 3 properties is still being sought.
Mixed-use buildings containing both commercial and non-commercial components, often under separate ownership: OTR has advised that increased tax rates may not be applicable to the non-commercial components under this circumstance. Provided there is no direct or indirect common ownership between the grantor and the owner of the commercial component in the building, a claim for exemption may be made on the FP-7/C accompanying the deed or deed of trust. The Recorder of Deeds will then verify the non-common ownership by looking to the OTR Assessment Database and a sworn statement by the grantor in the FP-7/C.
Buildings with Former Commercial Components:
OTR advised that buildings with former commercial components, in which the commercial use was discontinued before the sale or encumbrance of the property, will be taxed based upon the current certificates of occupancy.
Application of New Rates:
ROD will likely look to the date of a document's acknowledgement to determine whether it is subject to the new rates. Further clarification is being sought.
If you have any questions or need additional information, please do not hesitate to contact an Underwriter at Fidelity NCS D.C.
New Baltimore Yield Tax (01/19)
Effective January 11, 2019, Baltimore City will impose a new "Yield" tax, the proceeds of which are dedicated to the Affordable Housing Trust Fund. With certain exceptions, this tax applies to all transactions for which City Recordation and Transfer taxes are due pursuant to Balto. City Code, Art. 28, Subtitles 16 and 17, and for which the consideration exceeds $1,000,000.
The rate of the Yield Tax is:
- 0.15% on the amount collected under Subtitle 16, Recordation Tax
- 0.6% on the amount collected under Subtitle 17, Transfer Tax
Additional Information:
Baltimore City Code Article 28, Subtitle 17.1 Recordation and Transfer Taxes - Yield Excise Tax (PDF)
Maryland Transfer and Recordation Tax Table Revised January 3, 2019 (PDF)
Please contact an Underwriters at Fidelity NCS D.C. if you have questions. (PDF)
Webinar
ULI Washington: Southern Management’s $2.4B Transaction: Inside The Deal
On July 13, 2020 we took a deep-dive into this transaction via a ULI case study webinar. Joining us was Suzanne Hillman of Southern Management, Jeff Hayward of Fannie Mae, Brendan Coleman of Walker Dunlop, and Leslie Ludwig of L&L Advisors. The webinar gave us a great opportunity to learn about the complexity and nuances of the transaction and hear from some of the other key leaders who made it happen. Click here to access recording.
For more information see the article: Leadership Insights from Candace Chazen and Charlotte Troup Leighton:

At a time when we have experienced months of challenges none of us would have ever imagined – the triple threats of COVID-19, the employment and financial impact, and then the extraordinary protests once again calling for imperative, true, and lasting equality, we wonder if there is any good news to counterbalance what is playing out on the global stage. Where are we finding collaboration, patience, creative problem-solving — and solutions? And can we in commercial real estate forge forward during a time of confusion, distraction and uncertainty in not only the markets, but in our society and common humanity? We found that answer to be “yes, we can.” Read More….
Discover What’s New and Interesting in Our Backyard
As the nation’s capital, Washington, D.C. is steeped in history and is renowned for its distinctive character: it is at once an epicenter of politics, world-class tourist destination, working federal city and home to more than 672,000 residents.
The Washington metropolitan area, which includes “the District” and parts of Maryland, Virginia and West Virginia, is home to approximately 6.1 million residents and is the sixth-largest metropolitan area in the United States. As a major international hub for government, big business and tourism, our nation’s capital and its surrounding states feature some of the most dynamic and complex commercial real estate in the country.
Washington, D.C. has been experiencing an urban renewal for the past two decades, with billions in new investments in its downtown area, nearby neighborhoods and waterfront area. Investment in new retail, restaurants, and entertainment options have resulted in a population surge, according to the Washington DC Economic Partnership (WDCEP). The D.C. population has increased by 9 percent since 2010, and retail construction is on the rise to meet the population demand, with 1.9 million retail square footage under construction, according to WDCEP.
The area’s diverse economy creates unique opportunities for commercial real estate development. In May 2017, Washington, D.C. was named #6 on the IESE Cities in Motion Index, which ranks the world’s “smartest” cities analyzing their level of development in 10 key areas: governance, urban planning, public management, technology, the environment, international outreach, social cohesion, mobility and transportation, human capital and the economy. Easy access to lawmakers, close proximity to cybersecurity investment dollars, and a number of smart initiatives help to strengthen the commercial real estate market.
Commercial real estate construction remains at a fevered pace, the most since 2008, according to global real estate services firm Colliers International, with just over half of the space already committed after the first quarter of 2017.
About Fidelity National Financial
Fidelity National Financial, Inc. (FNF) is currently ranked #375 on the 2020 FORTUNE 500®*, and is among numerous defense, energy, media, hospitality and financial FORTUNE 500®* companies based in the region. Our Atlanta-based team of CRE professionals works in all facets of the industry, including power and energy projects, office buildings, industrial parks, multifamily housing, retail properties, government contracts, corporate transactions and more.
Discover what’s new and interesting in our backyard in the latest real estate news, provided courtesy of the FNF Newsdesk.
*FORTUNE®” and “FORTUNE 500®” are registered trademarks of Time Inc. Time Inc. is not affiliated with, and does not endorse products or services of, Fidelity National Financial, its subsidiaries, or affiliates.