Denver—HFF secured financing for two apartment communities in major Colorado markets: $40.2 million for Fox Ridge Apartment Homes in Centennial and $37.3 million for Canterwood Apartments in Boulder.
The borrower was a REIT sponsored by Resource Real Estate Inc. (RRE) and previously acquired the properties on an all-cash basis. The HFF debt placement team led by Senior Managing Director Eric Tupler arranged the financing with two separate loans through a life company correspondent lender. Both loans are seven-year, fixed-rate, with prepayment flexibility.
The 300-unit Fox Ridge Apartment Homes is located at 8225 South Poplar Way in the Cherry Creek School District of Centennial. The community has 27 two- and three-story buildings with one- and two-bedroom units averaging 977 square feet. Community amenities include a heated outdoor pool, 24-hour fitness center, outdoor barbecue and picnic area, and reserved carport parking. Residents are in close proximity to retail, dining and entertainment spots, including Park Meadows Mall.
The 216-unit Canterwood Apartments is located at 4970 Meredith Way in Boulder. The community has one- and two-bedroom units averaging 850 square feet across 14 buildings. Amenities include a swimming pool, hot tub, barbecue picnic area, dog park, yoga room, bike repair room, two clubhouses and a business center.
In a guest column for MHN, RRE Executive Vice President Kevin Finkel presented an optimistic view of multifamily investment in 2016, as long as companies think strategically. Some strategies he mentioned were renovating existing properties instead of building in most suburban areas and “investing in the older multifamily properties in affluent areas [because it] offers potential returns safe from interest rate fluctuation.” He added that these older properties can be renovated for underserved workforce renters in the area.
RRE specializes in real estate investments, commercial real estate lending and global real estate securities. The firm owns and manages assets valued at about $4.1 billion. RRE is a wholly owned subsidiary of Resource America Inc., which manages $21.7 billion in gross assets as of Dec. 31, 2015.