TODAY’S DEALS: HFF Arranges $90M Loan for New Archstone MF Project, and Other Transactions

By Anuradha Kher, Online News Editor, MHN and Gail Kalinoski, Contributing Editor, Commercial Property NewsBoston–Development of Archstone Avenir, a 241-unit luxury apartment community in Downtown Boston, is moving forward with help from a $90 million construction loan arranged by the Boston and Dallas offices of Holliday Fenoglio Fowler LP. The 36-month construction loan was secured through NEBF Investments (National Electrical Benefit Fund), a Washington, D.C.-based union pension fund advisor and real estate investment program. John Ahmed, an HFF associate director from the Dallas office who helped arrange the financing, says HFF has worked with NEBF in the past. The fund, created by the International Brotherhood of Electrical Workers and National Electrical Contractors Association, has nearly $12 billion in net assets, making it the third largest Taft-Hartley pension fund in the United States. The fund’s strategy focuses primarily on new development of virtually all commercial property types that “results in creation of superior investment returns and union man-hours,” according to the fund’s website. Referring to the tough credit environment, Ahmed says, “It’s a real testament to the quality and strength of Archstone and the product they have developed. They have the strongest presence in the strongest markets. Unfortunately, the same project, if developed by a less experienced group, might not have gotten done.” Archstone Avenir (pictured), scheduled for completion in spring 2009, will also have 28,000 sq. ft. of street-level retail space and a 115-space structured parking garage. It is located at the corner of Canal and Causeway streets, adjacent to the Rose Kennedy Greenway in the Bullfinch Triangle area in Downtown Boston. The property is above a newly constructed MBTA subway superstation that has access to the Orange and Green lines and across Causeway Street from the North Station commuter rails station. “The property enjoys what is arguably the best multifamily location in Downtown Boston,” says Anthony Cutone, an HFF director in the Boston office. Ahmed says the location in a vibrant 24-hour gateway market like Boston was one of the three main reasons the $90 million construction loan was approved in this environment. He also cited the strength and experience of the developer and the strong real estate fundamentals of the deal. Calling those three elements “a trifecta,” Ahmed says, “If you don’t have one of those legs of the stool in this environment, the deal doesn’t get done.”Redwood Capital Partners Acquires 314-Unit Rental Community for $25M Omaha, Neb.–Redwood Capital Partners recently acquired Steeplechase Apartments, a 314-unit multifamily community located in Omaha, Neb. for $25 million, sources say. The investment, part of Redwood’s tenant-in-common portfolio, is the firm’s sixth acquisition in less than a year. Redwood principals David Carlson and Mark Isaacson say the company plans to retain the acquisition as a rental property. Property management will be handled through Redwood’s partnership with Dallas-based Westdale, an investment/property management company. Holliday Fenoglio Fowler L.P. represented the seller in the negotiations.“The Omaha apartment market has experienced positive absorption, and decreasing vacancy,” says Carlson. “We are enthusiastic about this acquisition and the stability of its yield.”Steeplechase is located at 14949 Manderson Plaza within Omaha’s southwest suburban market. The project was developed in 1998, with units ranging from 885 sq. ft. to 1,550 sq. ft., and is currently 94 percent occupied. The property is a fully appointed gated community totaling 21 three-story garden style apartment buildings with one clubhouse building. “In a market where there is moderate new construction and continued benefits to renting, because of significant single-family market disturbance, we are confident that the Omaha multihousing market will perform solidly in the foreseeable future,” Isaacson says.72-Unit Property Sold for $2.92MOlathe, Kansas–Hendricks & Partners has arranged the sale of Fountain Ridge, located at 515 South Clairborne Road in Olathe, Kansas. The 72-unit apartment community was sold for $2,925,000. Future Enterprises LLC sold the property to Pacific Financial Exchange Corp., qualified intermediary for Hansen Perng & Mary Liu, Wei Chun Li, & William a Perng.