TODAY’S DEALS: HFF Arranges $191M in Construction Financing for Boston Mixed-Use Development
HFF arranges construction financing from a life insurance company for The Van Ness, located in Boston; Preferred Apartment Communities completes a Virginia purchase; and Greystone provides $30 million for two properties in Texas and Tennessee.
Boston—HFF announced that it has arranged construction financing for The Van Ness, a 762,000-square-foot mixed-use project located in Boston’s Fenway Triangle neighborhood.
HFF worked on behalf of the borrower, a joint venture between Samuels & Associates and institutional clients advised by J.P. Morgan Asset Management, to secure the long-term, fixed-rate financing through Northwestern Mutual.
The Van Ness is located at 1325 Boylston Street within walking distance of the Longwood Medical Area near Kenmore Square, Boston’s Back Bay neighborhood and the Town of Brookline. The project will include 172 residential units situated above a three-story, 169,000-square-foot Target department store. The property will also include 31,000 square feet of ground-floor retail, an 11-story, 233,000-square-foot, Class A office tower and 506 parking spaces.
The HFF team representing the borrower was led by director Greg LaBine.
“With The Van Ness, Samuels will continue their vision for the Fenway neighborhood to be a premier live/work/play destination in Boston,” LaBine says. “The combination of high-quality residences, first-class office space and superior shopping anchored by Target make this a welcome addition to Fenway.”
Preferred Apartment Communities buys townhome community
Hampton, Va.—Preferred Apartment Communities Inc. has acquired a 96-unit townhome community located in Hampton, Va., for approximately $18.1 million. The property, know as Trail II, is adjacent to the company’s 204-unit Trail Creek asset. Trail II was built in 2012 and is currently 94 percent occupied. PAC plans to combine the two assets and operate them as Trail Creek.
PAC acquired Trail II pursuant to the terms of the purchase option that was executed when PAC made a mezzanine loan investment to partially finance the construction of Trail II. In connection with the acquisition, PAC’s mezzanine loan was paid in full, including the payment of approximately $283,000 in an accrued exit fee. Upon the acquisition of Trail II, PAC refinanced Trail I with a combined loan of approximately $28.1 million on the combined Trail Creek community originated by KeyCorp Real Estate Capital Markets Inc., and expects the loan to be transferred to Freddie Mac within 60 days.
Greystone provides $30M in HUD financing for two assets
Nashville, Tenn. & Longview, Texas—Greystone has originated over $30 million of FHA insured loans for two multifamily properties located in Tennessee and Texas. The first property, Hickory Point at Brentwood, received $22.5 million pursuant to Section 223(a)(7). That 298-unit community is located in Nashville, Tenn.
Greystone provided another $7.9 million loan through HUD’s Section 223(f) program to the borrower for Hunters Crossing, a 192-unit apartment community located in Longview, Texas.
“Both the borrower and the Fort Worth HUD office pulled together to close this transaction on a tight time frame, avoiding additional costs or losses to the borrower or to the existing lender,” says Donny Rosenberg, a managing director in Greystone’s multifamily lending group.