PHILADELPHIA, PA – July 9, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces $19.454 million in acquisition financing for a 71-building/383-bed, scattered-site student housing portfolio at Lehigh University in Bethlehem, Pennsylvania.

The HFF team worked exclusively on behalf of the borrower, a private investment vehicle managed by Hong Kong-based Beacon Assets, to arrange the five-year, fixed-rate acquisition loan through Natixis.  HFF’s investment advisory team arranged the sale of the portfolio to the borrower, details of which were recently released in a separate announcement.

The 71 properties within the portfolio have prime ‘walk to campus’ locations and convenient access to nightlife and retail.  The portfolio achieved close to 99 percent occupancy during the last two academic years amidst strong year-over-year rent growth.  Lehigh University has an enrollment of more than 7,000 with growth of 25 percent expected during the next seven years.

The HFF debt placement team representing the borrower included managing director James Conley.

HFF announces acquisition financing for Landmark of Conroe, a 200-unit, Class A, garden-style apartment complex in Conroe, Texas.

The HFF team worked on behalf of the borrower, Hilltop Residential, to secure a seven-year acquisition loan with a fixed interest rate of 4.57 percent.  The loan has five years of interest-only payments as well as a flexible prepayment structure.

Landmark of Conroe is situated on approximately 15 acres at 1840 Longmire Road in Conroe, which is approximately 13 miles north of The Woodlands and 44 miles north of downtown Houston.  The community is just northwest of the intersection of Interstate 45 and Loop 336 near local retail and employment drivers as well as schools in the highly desirable Conroe ISD and recreational activities at Lake Conroe.  Landmark of Conroe consists of 23 two- and three-story residential buildings comprising one-, two- and three-bedroom units averaging 1,159 square feet.  Community amenities include a swimming pool, lighted basketball and tennis court, picnic/grilling area, car wash, state-of-the-art fitness center and clubhouse.  Hilltop plans to spend additional capital to upgrade the property’s amenities as well as renovate units as they turn.

HFF’s debt placement team representing the borrower included managing director Cortney Cole and analyst Jett Lucia.

Holliday Fenoglio Fowler, L.P. (HFF) announces the capitalization of Axletree, a to-be-built, 110-unit, Class A multi-housing project in the Portland suburb of Milwaukie, Oregon.

The HFF team worked on behalf of the developer, Guardian Real Estate Services, to place a floating-rate construction loan through a regional bank.  Additionally, the HFF team arranged joint venture equity through Hanover Financial.

Axletree will be situated at the intersection of SE Main and SE Washington Streets in downtown Milwaukie, less than 200 feet from the new MAX Orange Line stop.  The project, which will be the first multi-housing community to be built in Milwaukie since 1995, is also positioned within walking distance to numerous retail and riverfront recreational amenities. Due for completion in the third quarter of 2019, the property will feature a mix of studios, one- and two-bedroom floor plans averaging 610 square feet.  In addition, Axletree will encompass 77 parking stalls and nearly 7,000 square feet of ground-floor retail, and will offer impressive views of the Willamette River and Portland’s West Hills.

The HFF team representing the developer in the construction financing included managing director Casey Davidson. Senior managing director Ira Virden and director Carrie Kahn led the equity capitalization efforts.

Holliday Fenoglio Fowler, L.P. (HFF) announces the permanent financing for Apollo on H Street, a best-in-class, pre-stabilized residential, retail and office mixed-use property in Washington, D.C.’s H Street Corridor.

The HFF team worked on behalf of the borrower, a partnership between Insight Property Group and institutional investors advised by J.P. Morgan Asset Management, to secure the fixed-rate loan through TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA).  HFF previously arranged construction financing and joint venture equity for the partnership in 2014 while the property was in development.  

Apollo on H Street is in Washington, D.C.’s historic H Street Corridor at 600 H Street NE. With a WalkScore® of 97, the property is near numerous lifestyle and employment amenities and is five blocks from Union Station, which serves as the main rail transportation artery into and around the D.C. metro.  Completed in 2017, Apollo on H Street encompasses 431 apartments with luxury finishes, including Italian cabinetry, quartz countertops, stainless appliances and wood floors throughout. The apartments were 70 percent leased at the onset of the marketing process. In addition, the property features 57,000 square feet of fully leased retail space anchored by a 40,000-square-foot Whole Foods and a 32,000-square-foot office component occupied by WeWork.

Apollo on H Street also has 60,000 square feet of indoor/outdoor amenity space, including a public lobby and leasing lounge connected to the Wydown Café; world-class art collection curated by Long View Gallery and Art Enables; penthouse with demonstration kitchen, indoor fireplace and table games; conservatory event space with access to the roof terrace; east rooftop lounge with grilling kitchens, a movie projector and expansive landscaping; west rooftop lounge with outdoor living room, grilling kitchen, two-tiered swimming pool and outdoor fireplace; indoor dog wash and outdoor dog run; gym with private studio, boxing area and Peloton bikes; and communal gardens.

The HFF debt placement team representing the borrower included Jamie Leachman, Nicole Brickhouse and Jennifer Keller.

“We are seeing more and more available capital right now for both pre-stabilized and recently stabilized assets,” Leachman said.  “Given the quality, location and sponsorship, Apollo on H Street created significant interest from the lending community, providing the partnership multiple options from which to choose.”

“HFF was fortunate to have been involved in the permanent financing of the Apollo,” Brickhouse added.  “Insight Property Group and J.P. Morgan have created a one-of-a-kind asset.  Due to the extremely competitive environment for best-in-class, pre-stabilized assets, multiple lenders were able to get creative underwriting the asset as if it was stabilized.  TH Real Estate was fantastic to work with and ultimately provided the borrower with the most long-term flexibility.”

Holliday Fenoglio Fowler, L.P. (HFF) announces the capital raise for The Vineyards of Brookfield, a to-be-built, 146-home, age-restricted (55+) townhome community with a total project cost of $58 million in the Long Island community of Center Moriches, New York.

The HFF team worked on behalf of the developer, Ornstein Leyton Company (OLC), to secure an investment from Atalaya Capital Management (Atalaya), a New York City-based investment manager, to develop the property.

The Vineyards at Brookfield will be situated on approximately 29 acres near the intersection of Brookfield Avenue and Wading River Road.  The project will be less than half of a mile south of Sunrise Highway and adjacent to The Vineyards at Moriches, a 92-unit, active adult retirement community also developed by Ornstein Leyton Company.  The Vineyards at Brookfield will be completed in two phases, the first of which will deliver in 2019.  The gated community will feature a state-of-the-art clubhouse and outdoor recreational facilities featuring amenities, including a lounge, billiards room, card room, kitchen, fitness center, yoga studio, heated swimming pool, and bocce and pickle ball courts.

The HFF equity placement team representing the developer included senior managing director Evan Pariser, managing director Rob Hinckley and senior director David Fowler.

“Vineyards at Brookfield is the fourth installment of the highly successful Vineyards-branded, OLC development line in the area,” Hinckley said.  “The project takes advantage of the downsizing needs of the area’s aging population.  Atalaya proposed a favorable common equity structure to invest in the project given the attractive risk-return profile.  We look forward to seeing the project’s success unfold over the next several years.”

Holliday Fenoglio Fowler, L.P. (HFF) announces the more than $30 million sale of a 71-building/383-bed, scattered-site student housing portfolio at Lehigh University in Bethlehem, Pennsylvania.

The HFF team marketed the property exclusively on behalf of Campus Apartments.  A private investment vehicle managed by Hong Kong-based Beacon Assets purchased the property free and clear of existing debt.

The 71 properties within the portfolio have prime ‘walk to campus’ locations and incredible access to nightlife and retail.  The portfolio achieved close to 99 percent occupancy during the last two academic years amidst strong year-over-year rent growth.  Lehigh University has an enrollment of more than 7,000 with growth of 25 percent expected during the next seven years.

The HFF investment advisory team representing the seller included senior managing director Jose Cruz, senior directors Michael Oliver and Carl Fiebig, managing director Kevin O’Hearn and senior director Steve Simonelli with support from senior managing director Doug Opalka and director Ryan McBride.

“The portfolio garnered attention from local, regional and international investors,” Oliver said.  “The portfolio has shown strong historical performance and will continue to be a fantastic investment going forward.”