HSL Refinances Arizona Properties with $79M in Fannie Mae Loans

Desert Sands Apartments in Casa Grande, Ariz. Image courtesy of Greystone

Tucson, Ariz.-based HSL Properties has refinanced three Arizona apartment communities with a total of $79 million in Fannie Mae Delegated Underwriting & Servicing loans provided by Greystone.

Dan Wolins, managing director at Greystone, originated the loans on behalf of affiliated entities of HSL Properties. Each of the non-recourse, fixed-rate loans carry a 30-year amortization schedule, with interest-only payments for the entire 10-year term.

The largest loan is $36.6 million for the 323-unit Desert Sands Apartments in Casa Grande, Ariz. The loan carries a 5.94 percent per annum interest rate. HSL Properties acquired the property from Charles M. Heers in March 2010 for approximately $16.8 million, according to Yardi Matrix data.

Canyon Oaks Apartments, a 456-unit multifamily community in Tucson, was refinanced with an approximately $29.4 million loan with a 5.76 percent per annum interest rate. HSL Properties acquired the asset from Camden Property Trust for nearly $20.3 million in April 2006. The seller had owned the property since June 1994, according to Yardi Matrix.

Brittany Court Apartments, a 160-unit property in Tucson, was refinanced with a $13.1 million loan that carries a 5.92 percent per annum interest rate. HSL Properties has owned the property since August 1997, when it purchased it from Clifton Properties for $5 million.

In November 2021, Wolins helped HSL Properties secure a $51.9 million Fannie Mae DUS loan to refinance a 312-unit community in Tucson. The previous year, Wolins arranged separate Fannie Mae DUS loans totaling $91.3 million for HSL Properties to refinance a four-asset,1,406-unit apartment portfolio in Tucson.

Property details

Located at 600 Pantano Road in Tucson, Canyon Oaks Apartments was built in 1985 and was 94.3 percent occupied when the refinancing closed. The 12.63-acre property has 18 three-story buildings and a mix of one- and two-bedroom apartments ranging in size from 456 to 759 square feet, with an average of 559 square feet. Rents range from $816 to $1,086 with an average of $902, according to Yardi Matrix data.

Amenities include private balconies or patios for the apartments as well as a clubhouse, fitness center, swimming pool and spa, tennis and pickleball court, volleyball court and laundry facilities. The property has 456 parking spaces, with covered parking available.

Built in 2007, Desert Sands Apartments is located at 720 W. O’Neil Drive in Casa Grande. The 16.78-acre site has 24 two-story buildings and was 89.5 percent occupied at the time the loan closed. The property has a mix of one-, two- and three-bedroom units that range in size from 759 to 1,197 square feet, with an average of 981 square feet. Rents range from $1,395 to $1,768, with an average of $1,525, according to Yardi Matrix data.

Apartment features include washers and dryers in all units, above average ceiling heights and private balconies or patios. Community amenities include two pools and spas, a fitness center, business center, playground and basketball court. There are 523 parking spaces and covered parking is available.

Brittany Court Apartments is located at 9000 E. Speedway Blvd. in Tucson. Built in 1984, the property was 88.8 percent occupied when the loan closed. The nearly 5-acre property has 16 two-story buildings with a mix of one- and two-bedroom apartments ranging in size from 650 to 823 square feet, with an average of 754 square feet. Rents range from $937 to $1,163 with an average of $1,073, according to Yardi Matrix data.

All apartments have fireplaces, while two-bedroom units have washers and dryers and select units have vaulted ceilings. Community amenities include a clubhouse, fitness center, pool, spa and laundry facilities. There are 195 parking spaces and covered parking is available.