HFF Arranges $95M Construction Loan for Hi-Rise in Reston, Va.
- Jul 22, 2014
Washington, D.C.—HFF announced that it has arranged $95 million in financing for the development of BLVD at Reston Station, a 21-story, 448-unit, luxury apartment building atop the entrance of the Wiehle-Reston East Metro Station in Reston, Va.
HFF worked on behalf of Comstock Partners to place the 48-month construction loan with Citizens Bank.
Preleasing in late 2015, BLVD at Reston Station will be located atop the entrance of the Wiehle-Reston East Metro Station, which is the last stop on Phase I of the new Silver Line. The building will be the inaugural phase of the Reston Station mixed-use development that will include 550,000 square feet of Class A office space, a 200-room hotel and an additional multifamily residential building. All buildings will have integrated retail and will be situated around the urban plaza. The property’s residential units will average 868 square feet each and will include studio, one-, two- and three-bedroom floor plans. Community amenities will include a resort-style rooftop swimming pool, spa-quality fitness facility, yoga room and private entertaining area including a glass fireplace, wet bar, media screen and state-of-the-art billiard room.
The HFF debt placement team was led by Walter Coker and Brian Crivella.
“The project received significant interest from lenders as it is a best-in-class development opportunity with institutional sponsorship and is the centerpiece of Comstock’s Reston Station, a mixed-use development, which at full build-out will be more than one million square feet with immediate access to the new Silver Line Wiehle-Reston East Metro Station,” says Coker.
Red Mortgage funds $31M FHA supplemental loan for new construction
Dallas—Red Mortgage Capital announced that it closed a $31M FHA-insured 232/241(a) supplemental loan to develop Parker Senior Living by MorningStar, a seniors housing community located in the town of Parker, Colo., part of the growing southeast suburbs of Denver.
The deal was a joint venture between two Denver-area firms, Faestel Properties and JHL Constructors. MorningStar Senior Living currently operates the existing building and is slated to manage the expansion.
Currently on the project site is an existing 64-unit assisted living and memory care community named Parker Assisted Living by MorningStar. The original project was also financed by RED with an FHA-insured Section 232 New Construction loan. The original development has been extremely successful, as it leased up within 10 months of opening and is currently full with a waiting list.
The FHA Section 232/241(a) supplemental loan will provide construction and permanent financing to fund two new senior resident buildings, adding 49 units of independent living, 54 units of assisted living and 24 units of dementia/memory care to create the Parker Senior Living by MorningStar campus. The complementary buildings will help fulfill the enormous demand in Parker and nearby communities for assisted living and memory care, while providing more independent seniors the opportunity to live on a campus with active living options and the ability to transition to different care levels without moving to a new community.
RED obtained approval for an early start to construction for the new memory care building while the application was still in review at HUD. As a result, it is anticipated to open by October 2014—within four months of initial closing. There are prospective residents already on a waiting list for this new building. The second larger assisted and independent living building is scheduled to be open by late 2015.
Mark Tran, director of Seniors Housing Originations for RED says, “We are very happy to have had the opportunity to work with the client on such an important project for the City of Parker. The process went very smoothly and ultimately we achieved everything that the owner had hoped with this project. We were able to structure the deal with a lower equity requirement compared to a conventional bank loan, offer a non-recourse, low-interest, 40-year loan plus the construction period, and lead the development team through a successful early start so that they could open the doors to the memory care building sooner.”
Joel Faestel, vice president of Faestal Properties, says, “Parker is our home. Over the years, we have continued to show our commitment to smart growth in the area. The tremendous acceptance of the original building led us to the decision to expand the senior housing offerings within our community. The bankers at RED have been with us every step of the way and have demonstrated their commitment and expertise time and again.”