CBRE Arranges $700M Refi for National Portfolio

The nine Class A+ assets in the Modera collection are owned by a partnership of Rockwood Capital Corp. and Mill Creek Residential.
Modera Flats

A partnership of Rockwood Capital Corp. and Mill Creek Residential has refinanced a nine-property, Class A+ multifamily portfolio with a $700 million loan arranged by CBRE.

Andrew Behrens and Jesse Weber of CBRE Capital Markets, Debt & Structured Finance team in San Francisco represented the Rockwood and Mill Creek partnership in the acquisition of capital from Fannie Mae. The seven-year credit facility is a mix of sub-4 percent fixed rate and floating-rate debt. It is a refinance of a combination of existing construction and bridge financing loans.

In April 2017, Behrens and Weber arranged a five-year, interest-only floating rate $363.7 million mortgage for Mill Creek Fund 1, a joint venture of Rockwood and Mill Creek that included six of the nine properties in this latest refinancing. Those properties are: Modera Glendale, Glendale, Calif.; Modera Flats, Houston; Modera Lofts, Jersey City, N.J.; Modera Douglas Station, Miami; Modera Mosaic, Merrifield, Va.; and Modera Natick, Natick Mass.

Refinancing Details

The refinancing of those 1,529 units was later highlighted by Multi-Housing News in December 2017 as one of the top deals of the year. Lenders for that deal were Morgan Stanley and a syndicate including New York Life and MetLife.

Modera Medford

In addition to those six properties, the other assets in the new refinancing are: Modera South Lake Union, Seattle; Modera Pearl, Portland; and Modera Medford, Medford, Mass. Those properties encompass an additional 881 unit and were built between 2016 and 2017.

 “Our team was able to utilize our vast multifamily financing expertise to underwrite each of these newly-built assets that are in various stages of lease-up and demonstrate to lenders the benefits of financing this portfolio,” Weber, vice chairman, Capital Markets, CBRE, said in a prepared statement. “The resulting interest from the lending community was significant and culminated in a competitive process, at the end of which Fannie Mae came away from as the winning lender. We are thrilled with the outcome for both our client and Fannie Mae.”

The latest transaction also comes weeks after another Modera property—Modera Metro Dadeland, a 25-story, 422-apartment luxury Miami building—received $92 million in financing in February.

In December, Mill Creek, in partnership with a Rockwood Capital affiliate broke ground on Modera Lo-Hi, a 132-unit luxury property in downtown Denver. A month earlier, Mill Creek and institutional investors advised by J.P. Morgan Asset Management refinanced Modera Avenir Place, a Class A, 628-unit multifamily community in Vienna, Va., with a $156.2 million loan.

Images courtesy of CBRE