Behringer Grabs 435 Units in Dallas from Greystar
- Dec 10, 2014
Dallas—Behringer Harvard Opportunity REIT II Inc. has added 435 units to its portfolio with the acquisition of Lakewood Flats, a Class A community located in the Lakewood area of Dallas along the Santa Fe Trail. ARA Dallas represented the seller, Greystar Real Estate Partners, in the transaction.
The asset was completed in 2013. According to ARA, the location presents significant barriers to entry, with a median home value at $353,191 within a one-mile radius of the community.
“Lakewood Flat’s outstanding infill location along the Santa Fe Trail and White Rock Lake caters to an active lifestyle, and investors could easily perceive this value,” notes ARA’s Brian O’Boyle, Sr. “The property exhibits great architectural detail and the option to rent garage spaces for added convenience. It is unusual for a property to have a surface parking lot in a location like this, which also attracted investor attention. However, the biggest draw is the significant barrier to entry as there is no new land zoned for multifamily construction within the vicinity of Lakewood Flats.”
O’Boyle, Sr. worked alongside Brian O’Boyle, Jr., Brian Murphy and Richard Furr in closing the sale.
Hanwha, Avalon Development land $100.7M for in construction financing in Honolulu
Honolulu—HFF has arranged $100.7 million in financing for the development of 7000 Hawaii Kai, a 269-unit Class A asset being built by a subsidiary of Hanwha America Development and Avalon Development. A $67.3 million first lien loan was provided by Bank of the Ozarks; iStar financial provided $33.4 million in mezzanine financing.
Due for completion in summer 2016, 7000 Hawaii Kai will be situated on one of the last remaining residential development sites in the submarket, a 3.8-acre site at the intersection of Keahole Street and Hawaii Kai Drive overlooking the Hawaii Kai Marina in East Honolulu. Community amenities include a swimming pool, fitness center with cardio machines and yoga studio, club room with full kitchen, library, meeting room, media/performance room and a business center.
The HFF debt placement team representing the borrower was led by Senior Managing Director Aldon Cole and Director Zack Holderman.
“7000 Hawaii Kai is being developed at a time when market-rate and affordable housing in Hawaii is increasingly hard to come by given high land prices and a general shortage of housing. As a result, we anticipate strong demand for this product, which is rarely delivered in Hawaii,” says Cole.
Hunt Mortgage Group refinances multifamily property in Alabama
New York—Hunt Mortgage Group, a commercial real estate lender, announced it provided a $6.1 million Fannie Mae tier-2 cash-out refinance for a multifamily property located in Madison, Ala.
Built in 2001, Abby Glenn Apartments is a garden-style apartment community located at l180 West Dublin Drive. It is comprised of 11, one-story apartment buildings containing 119 units and one auxiliary building. The borrower is Dublin I Investment LLC and the key principal is Steven E. Gouletas.
The loan term is 10 years, with principal amortizing over a 30-year schedule, and a 9.5-year yield maintenance period. Proceeds from the loan will be used to acquire additional multifamily investments.
“We arranged the acquisition financing for the borrower in 2008 and evolving credit standards required a restructuring of the partnership and an additional key principal to maximize the loan amount,” explains Bryan Cullen, managing director with Hunt Mortgage Group.
Abby Glenn is in excellent condition and is currently 94.96 percent occupied. In addition, the local employment sector in Madison is dominated by the NASA Marshall Space Flight Center & Army’s Redstone Arsenal in addition to many nearby companies specializing in defense contracting and the aerospace engineering industries.
“These factors, combined with the solid underlying real estate fundamentals, made this an attractive deal for Hunt Mortgage Group,” Cullen says.
Abby Glenn is situated on a 10-acre parcel of land. Property amenities include a swimming pool, a shared laundry facility, leasing office and 192 open parking spaces.
The Hunt deal team included Cullen and Jake Kressner.
“We used Bryan Cullen and the Fannie Mae DUS Program seven years ago when we purchased the property. We were interested in investigating different financing options but in the end settled on Fannie Mae again for the low fixed rate and the 75 percent LTV,” says Gouletas. “Bryan and the Hunt Mortgage Group team are true professionals who work hard to ensure that each step of the process is seamless.”