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WASHINGTON, D.C. – August 7, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces acquisition financing for Northlake Townhomes, a 76-unit, garden-style apartment property in North Charleston, South Carolina.
HFF worked on behalf of the borrower, Brick Lane, to secure the $5.25 million, 10-year, fixed-rate acquisition loan through Freddie Mac’s CME Program. The securitized loan will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans. Freddie Mac has provided financing for 786 units with Brick Lane during the last two years.
Northlake Townhomes consists of 17 buildings encompassing spacious two- and three-bedroom units. Located at 4135 Bonaparte Drive, the property is within one mile of Interstate 526, which provides access to major employers in the greater Charleston MSA. Northlake Townhomes is also near the Charleston International Airport, Tanger Outlets and Joint Base Charleston. The property is 98.68 percent occupied.
The HFF debt placement team representing the borrower included Jamie Leachman and Nicole Brickhouse.
DENVER, CO – July 31, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces $7.74 million in financing for two Colorado Springs, Colorado, apartment communities – Alvarado Place and Solar Vista.
The HFF team worked on behalf of Radford Investment Properties to secure two separate fixed-rate loans through the Freddie Mac Small Balance Loan program. Proceeds from the loan for Alvarado Place refinanced a floating-rate loan the HFF team sourced for the borrower in 2016 and proceeds from the loan for Solar Vista were used to acquire the property.
Alvarado Place is positioned near major Colorado Springs thoroughfares, including Fountain Boulevard, Powers Boulevard and Interstate 25. Situated at 1465 Alvarado Drive, the community shares a property line with the U.S. Post Office and is directly east of the Leon Young Sports Complex. The property comprises 99 studio, one- and two-bedroom units averaging 519 square feet each housed within five, two-story residential buildings.
Solar Vista is a 28-unit property located at 1535 S. 8th Street in Colorado Springs, approximately five miles west of Alvarado Place. The community is one mile from Interstate 25 and just north of the acclaimed Broadmoor luxury resort and Ivy Wild redevelopment area. Units include a mix of one- and two-bedroom layouts averaging 563 square feet within a three-story building.
The HFF debt placement team representing the borrower consisted of director Brock Yaffe.
“HFF continues to help Radford meet its financing needs at the highest level,” said a representative from Radford Investment Properties. “They provide excellent customer service and deliver loans on time and within the agreed upon terms. Having financing security allows Radford to concentrate on deal-specific parameters while under contract to make the best investment decisions for its clients.”
Holliday Fenoglio Fowler, L.P. (HFF) announces financing totaling $172.845 million for five apartment communities comprising 1,534 units in the Denver and Houston metropolitan areas.
The HFF team worked on behalf of the borrower, Advenir, Inc., to secure the seven-year, fixed-rate loans in five separate transactions through Freddie Mac’s CME Program. The securitized loans were used to refinance existing floating-rate debt on the properties, and will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans. HFF worked with the borrower in a strategy to mitigate interest-rate risk amid the current rising rate environment. The average rate across the five fixed-rate loans is 4.27 percent with rates spanning from 4.21 to 4.34 percent. The average rate at the retirement of the LIBOR-based, floating-rate loans was 4.47 percent with rates spanning from 4.26 to 4.86 percent. The fixed-rate conversions took the ongoing LIBOR adjustment risk off the table and ultimately provided the borrower with a reduction in the all-in rate for each property with additional interest-only amortization.
“We have found this to be an opportunistic time to lock interest rates with fixed-rate loans for stable properties that exhibit a long-term ownership horizon,” said Stephen L. Vecchitto, managing director and principal of Advenir, Inc. “These properties provide substantial current cash flow and continued market appreciation. While the original floating-rate debt allowed for the execution of the value-add business plan upon acquisition, the new fixed-rate debt allows for interest rate stability and a longer hold timeframe for the asset.”
The properties in the portfolio are: Advenir at Eagle Creek, a 258-unit property located at 10373 North Sam Houston Parkway East in Humble, Texas; Advenir at Woodbridge Reserve, a 288-unit property located at 15000 W. Airport Boulevard in Sugar Land, Texas; Advenir at Cherry Creek North, a 345-unit property located at 1090 S. Parker Road in Denver, Colorado; Advenir at Cherry Creek South, a 292-unit property located at 1211 S. Quebec Way in Denver, Colorado; and Advenir at Del Arte, a 351-unit property located at 151 S. Joliet Circle in Aurora, Colorado. The portfolio is 94.57 percent occupied overall.
The HFF team representing the borrower included senior managing director Eric Tupler and managing directors Josh Simon and Cortney Cole.
Underscoring the growing popularity and demand for Freddie Mac’s Small Balance Loan offering, it was announced today that the platform has achieved, for the first time since the SBL offering’s inception in late 2014, $1 billion in funded loans in under a year from a single lender, Greystone.
Freddie Mac’s Small Balance Loan offering provides a competitive option for loans between $1 million and $6 million on multifamily properties comprising between 5 and 50 units. The flexible loan offering provides six different hybrid ARM and fixed-rate financing solutions with 30-year amortization and up to 80% LTV in certain markets.
Since its launch in 2014, the SBL offering has funded a total of $10.5 billion and over 4,000 loans. Illustrating its commitment to the Freddie Mac SBL lending platform since the offering’s launch, Greystone was the first lender to close an SBL loan in 2014, a $1.9 million loan on a 6-unit property in Newport Beach, CA.
"Greystone has been a strong partner from the inception of our Small Balance Loan Program and remains a pillar of its success," said David Brickman, executive vice president and Head of Freddie Mac Multifamily. "On behalf of Freddie Mac Multifamily, we congratulate Greystone on achieving this significant milestone, and look forward to strengthening our partnership in the months and years to come."
“Appetite for the Freddie Mac Small Balance Loan offering is growing by leaps and bounds, and we look forward to the next billion in funded deals,” added Rick Wolf, head of Greystone’s small balance loan production.”
"Our relationship with Freddie Mac is stronger than ever, and we are honored to have reached this funding milestone with them," said Stephen Rosenberg, CEO, Greystone. "Greystone is committed to being the easiest and most delightful lender to work with by empowering our employees and investing in technology."