DEAL MAP

DENVER, CO – January 28, 2019 – Holliday Fenoglio Fowler, L.P. (HFF) announces $15.1 million in financing for Advenir at Del Arte Townhomes, a 94-unit multi-housing community in Aurora, Colorado.

The HFF team worked on behalf of the borrower, Advenir, Inc., to secure the seven-year, fixed-rate loan through Freddie Mac’s Green Up Program.  The securitized loan was used to refinance existing floating-rate debt on the property, and will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.  The refinance was a continuation of the borrower’s strategy to mitigate interest-rate risk amid the current rising rate environment.  The borrower was able replace their existing 5.15 percent, floating rate at closing with a 4.25 percent, seven-year fixed rate.  The fixed-rate conversion took the ongoing LIBOR adjustment risk off the table and ultimately provided the borrower with a reduction in the all-in rate with additional interest-only amortization.

Advenir at Del Arte Townhomes is located at 11135 E. Alameda Avenue, which offers nearby access to Interstates 25, 225 and 70.  The property’s 94 townhome-style units are 93 percent occupied and comprise a mix of one- and two-bedroom layouts and features, including attached garages, washers and dryers, and spacious entertainment kitchens.  The property shares common area amenities with neighboring Advenir at Del Arte, a 351-unit community with a variety of loft- and flat-style units.

The HFF team representing the borrower included senior managing director Eric Tupler and managing director Josh Simon.

NEWPORT BEACH, CA – January 17, 2019 – HFF announces financing totaling $72 million for Continental Gardens, Stuart Drive Apartments and Rose Gardens Apartments, three affordable apartment communities totaling 536 units in Orange County, California.

The HFF team worked exclusively on behalf of the borrower, Bertram Partners, Inc., to secure two 15-year, fixed-rate loans through Freddie Mac.  The loan for Continental Gardens is valued at $41.261 million and the loan for Stuart Drive and Rose Gardens Apartments totaled $30.744 million.  Proceeds from the securitized loans, which will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans, were used to refinance the existing debt on the properties.  Bertram Partners, or a wholly owned affiliate, has owned the properties since they redeveloped them in the mid 1980’s.

Continental Gardens is located at 8101 Cerritos Avenue in the western Orange County community of Stanton.  Originally constructed in 1963, the community’s 297 one-, two- and three-bedroom units are 99 percent occupied.  Stuart Drive Apartments is located at 11632 Stuart Drive in the northern Orange County community of Garden Grove.  Also located in Garden Grove, Rose Gardens Apartments is situated three miles southwest of Stuart Drive Apartments at 9645 Westminster Avenue.  Stuart Drive and Rose Gardens, which were developed in 1960 and 1963, total 239 one- and two-bedroom units.  The communities are operated as one property and are 99 percent occupied overall.

The HFF debt placement team representing the borrower consisted of director Jamie Kline and analyst Nicholas Lench.

DENVER, CO – January 15, 2019 – HFF announces the $23.45 million refinancing of The Standard, a 134-unit apartment community in Scottsdale, Arizona.

The HFF team worked on behalf of the borrower, The Sunset Group, to secure the 10-year, fixed-rate loan through Freddie Mac.  The securitized loan, which is being used to replace existing construction financing, will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.

The Standard is located at 6811 E. Main Street at the entrance of the Hotel Valley Ho, a Frank Lloyd Wright-inspired, Four Diamond hotel.  Completed in 2016, the community is situated within Old Town Scottsdale’s Arts District, which places it within walking distance to more than 100 art galleries, boutiques and five-star restaurants.  In addition to the core location, The Standard’s amenities include a resort-style swimming pool with an outdoor kitchen, private cabanas, rooftop terrace, state-of-the-art fitness center, contemporary clubhouse and access to Hotel Valley Ho’s on-site amenities.  Units feature quartz countertops, stainless steel appliances, wood or ceramic wood-plank flooring, nine-foot ceilings, and full-sized washers and dryers.

The HFF debt placement team representing the borrower included managing director Josh Simon, senior director Brad Miner and director Matthew Stewart.

“HFF was an invaluable resource in helping us execute on our financing needs,” said JL Singer, principal and senior vice president at The Sunset Group.  “We look forward to leveraging HFF’s indispensable offerings and growing our portfolio together.”

DENVER, CO – January 15, 2019 – HFF announces the $23.45 million refinancing of The Standard, a 134-unit apartment community in Scottsdale, Arizona.

The HFF team worked on behalf of the borrower, The Sunset Group, to secure the 10-year, fixed-rate loan through Freddie Mac.  The securitized loan, which is being used to replace existing construction financing, will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.

The Standard is located at 6811 E. Main Street at the entrance of the Hotel Valley Ho, a Frank Lloyd Wright-inspired, Four Diamond hotel.  Completed in 2016, the community is situated within Old Town Scottsdale’s Arts District, which places it within walking distance to more than 100 art galleries, boutiques and five-star restaurants.  In addition to the core location, The Standard’s amenities include a resort-style swimming pool with an outdoor kitchen, private cabanas, rooftop terrace, state-of-the-art fitness center, contemporary clubhouse and access to Hotel Valley Ho’s on-site amenities.  Units feature quartz countertops, stainless steel appliances, wood or ceramic wood-plank flooring, nine-foot ceilings, and full-sized washers and dryers.

The HFF debt placement team representing the borrower included managing director Josh Simon, senior director Brad Miner and director Matthew Stewart.

“HFF was an invaluable resource in helping us execute on our financing needs,” said JL Singer, principal and senior vice president at The Sunset Group.  “We look forward to leveraging HFF’s indispensable offerings and growing our portfolio together.”

CHARLOTTE, NC – November 28, 2018 – HFF announces the sale and financing of an eight-property multi-housing portfolio totaling 2,883 units in various high-growth submarkets within North Carolina’s Research Triangle.

The HFF team marketed the offering on behalf of the seller, and procured the buyer, a Carroll Organization joint venture.  Additionally, HFF’s debt placement team worked on behalf of the new owners to arrange floating-rate acquisition loans for six of the eight communities through Freddie Mac’s CME Program.  The securitized loans will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.

The properties in the portfolio are: Oaks at Weston in Morrisville; Meadows at Kildaire in Cary; The Reserve at Lake Lynn, Woodland Court, Walnut Creek and Spring Forest Apartments in Raleigh; Copper Mill in Durham; and The Crest at West End in Carrboro.  Units average 962 square feet overall and the average year of completion for the portfolio is 1990.  The portfolio’s location within the Research Triangle positions it within the path of sustainable job growth from the region’s innovation-based economy, which is anchored by three research universities – Duke University, the University of North Carolina at Chapel Hill and North Carolina State University.  Financing was secured for Oaks at Weston, Meadows at Kildaire, The Reserve at Lake Lynn, Woodland Court, Walnut Creek and Copper Mill.

The HFF investment advisory team representing the seller included managing directors Justin Good and Jeff Glenn, senior director Allan Lynch and director Caylor Mark along with senior managing director Roberto Casas.

HFF’s debt placement team representing the new owner included managing director Elliott Throne, senior director Roger Edwards, senior managing director Ed Coco and associate Ware Shipman.

 

HOUSTON, TX – November 12, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces financing totaling $800.45 million for a 23-property multifamily portfolio consisting of 7,289 units across eight states.

The HFF team worked exclusively on behalf of Starlight Investments, a Toronto, Canada-based real estate investment and asset manager, and its closed-end fund, Starlight U.S. Multi-Family (No. 5) Core Fund (TSXV: STUS.A/STUS.U).  The loan was originated as a Freddie Mac Structured Pool Transaction with five, six and seven-year loan terms and included both fixed- and floating-rate components.  Additionally, the loan allowed ultimate flexibility with collateral release provisions and varying prepayment windows.  This transaction also took advantage of Freddie Mac’s index lock program, allowing the sponsor to lock the underlying rate several months prior to closing.  Freddie Mac’s Structured Pool Transactions target large, single-sponsor portfolios and provide enhanced structuring to meet the borrower’s specific needs.  The master note, which is secured by the cross-collateralized pool of 23 properties owned by Starlight U.S Multi-Family (No. 5) Core Fund, will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer.

The 23 Class A properties are located in the Atlanta, Austin, Charlotte, Dallas, Denver, Houston, Las Vegas, Nashville, Orlando, Phoenix, Raleigh, San Antonio and Tampa markets.  The average year of construction for the portfolio is 2012, and the properties boast an average occupancy of 93 percent overall.  Nearly half of the units (47.5 percent) were financed under Freddie Mac’s Green Advantage program, which help finance energy- and water-saving improvements that help lower operating costs for buildings, keep utility costs low and protect the environment.

The HFF debt placement team representing the borrower included senior managing director Matt Kafka, managing director Campbell Roche and analysts Matthew Williamson, Tolu Akindele and Wilson Bauer.

“The Starlight U.S. Multi-Family (No. 5) Core Fund portfolio comprises 23 institutional-quality assets located in strong growth markets across the U.S.,” Kafka said.  “Given the high-performing nature of the assets and diversity of the income stream, Freddie Mac’s Structured Solutions Group was able to customize an incredibly flexible and attractive debt execution.”

“This transaction was tailored to meet the unique needs of this borrower and the complex nature of this portfolio, which is exactly the purpose of the Structured Pool Transaction offering,” said Lauren Garren, vice president of Production & Sales at Freddie Mac Multifamily.  “The Structured Solutions Group worked closely with Freddie Mac’s regional teams on this multifaceted and complex transaction, and it would not have been possible without close collaboration with our strong partners at HFF and Starlight.  We look forward to continuing to work with these partners to devise solutions to meet the needs of borrowers.”

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