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.

Holliday Fenoglio Fowler, L.P. (HFF) announces $56.5 million in financing for Willow Crossing, a 579-unit, multi-housing community in the northwest Chicago suburb of Elk Grove Village, Illinois.

The HFF team worked on behalf of The Marquette Companies to secure the five-year, floating-rate loan through Wells Fargo.  Loan proceeds were used to acquire the property and include a future-funding component that the borrower will use to revitalize the well-located asset.

Willow Crossing is located in the thriving Chicago suburb of Elk Grove Village, which is home to excellent public schools, substantial recreational facilities and proximate to major employment hubs.  Willow Crossing consists of 14 buildings in a park-like setting.  Renovated units will feature kitchens with new countertops, stainless steel appliances, walk-in closets, hardwood-style floors and private patios or balconies.  Community amenities include two heated swimming pools, a grilling area, volleyball court, bark park, two playgrounds, fitness center, clubhouse, business center and a mix of surface and under-unit garage parking.  In addition, the transit-oriented property is less than three miles from the Itasca Metra station, which offers commuters access around the entire Chicagoland region.

The HFF debt placement team representing the borrower included managing director Matthew Schoenfeldt.

“Lenders recognized Willow Crossing as a genuine diamond in the rough,” Schoenfeldt said. “This factor, combined with Marquette’s masterful value-creation strategy, allowed us to generate multiple aggressive loan proposals.”