HFF Arranges $86.8M Acquisition Financing for Crow Fund Through TIAA-CREF

HFF worked on behalf of a private real estate fund advised by Crow Holdings Capital Partners LLC to secure a 10-year, fixed-rate loan; and Beech Street closes on a $17 million Fannie Mae refinance loan.

Fairfax, Va.—HFF announced that it has arranged $86.8 million in acquisition financing for Monument Park, a 460-unit, Class A multi-housing community in Fairfax, Va.

HFF worked on behalf of a private real estate fund advised by Crow Holdings Capital Partners LLC (CHCP) to secure the 10-year, fixed-rate loan through TIAA-CREF.

Monument Park is located at 4457 Oakdale Crescent Court in suburban Washington, D.C.’s Fair Oaks submarket and provides immediate access to key transportation routes in the area such as Interstate 66 and Lee Jackson Memorial Highway. Situated on 17.05 acres, the property is stabilized and consists of one-, two- and three-bedroom units averaging 1,014 square feet each. Community amenities include a clubhouse, resort-style swimming pool, fitness center, business center, pub room, media center, jogging trails and barbecue and picnic area.

HFF’s debt placement team representing the borrower was led by senior managing director Whitaker Johnson and managing directors Andy Scott and Cary Abod.

Crow Holdings Capital Partners was established in late 2010 in response to new regulations and to expand the business of Crow Family Holdings, which was formed in the early 1990s to exclusively manage the assets of the Trammell Crow Family. Since 1998, CHCP and CHCP-affiliated entities have managed a series of real estate private equity funds that are designed to generate current income and benefit from the capital appreciation of portfolio investments. These six funds have had total equity commitments from partners of approximately $3.6 billion, approximately $675 million of which was committed by Crow Family Holdings.

TIAA-CREF is a national financial services organization with $481 billion in assets under management (as of 6/30/12) and is the leading provider of retirement services in the academic, research, medical and cultural fields.

Beech Street closes $17M Fannie Mae refinance loan

Tuscaloosa, Ala.—Beech Street Capital, LLC announced that it closed a $17 million Fannie Mae Dedicated Student Housing loan to refinance the College Station Portfolio, which consists of 264 units in 19 properties owned by ROAR LLC in Tuscaloosa, Ala. Chad Thomas Hagwood, executive vice president of loan originations for Beech Street, originated the loan, and Brandon E. Pate managed the transaction.

“The College Station Portfolio was an excellent fit for Fannie’s Dedicated Student Housing program,” notes Hagwood. “ROAR has a proven track record with student properties, and the properties themselves, within walking distance of campus, are in very high demand with University of Alabama students.” The properties typically operate at 99 percent occupancy. The interest rate on the loan was in the low four percent range.

The complexity of the portfolio, with 19 properties built between 1920 and 1992 clustered in three groups around the campus, proved no obstacle to Beech Street’s team. “The hallmark of the Beech Street approach is our ability to adapt to our borrowers’ circumstances,” Hagwood says.

The Tuscaloosa apartment market is dynamic and very active, fueled by the dramatic growth of the University of Alabama over the past 10 years and the redevelopment that has occurred in the wake of the devastating tornados that hit the city in April 2011, including a multimillion dollar downtown urban renewal project.

The fixed-rate loan has a 10-year term and 9.5 years of yield maintenance with 30 years of amortization, payable on an actual/360 basis.