TODAY’S DEALS: HFF Secures $167M for 1,523-Unit Community in Denver
HFF arranges $167 million in financing for a 1,523-unit community in Denver; JLL closes the sale of a 512-unit community north of Seattle; and Boston Capital completes a $244 million tax credit fund.
Denver—Holliday Fenoglio Fowler has arranged $167 million in first trust deed and mezzanine financing for The Breakers Resort, a 1,523-unit, Class A community in Denver. The borrower was a joint venture between The Bascom Group and Koelbel and Company. The $132 floating-rate first trust deed was provided by ING Real Estate Finance. The $35 million mezzanine loan came from Blackstone. The borrower was able to close within 29 days from application.
The deal was led by Mark Erland, director, and Charles Halladay, associate director, of HFF’s Orange County Office and Mona Carlton, senior managing director, at the firm’s Dallas office.
“The loan structure was chosen because of the competitive interest rate, the low combined loan constant, prepayment flexibility, funds available to finance capital improvements, and certainty of execution,” says Erland. “ING Real Estate Finance and Blackstone provided a very competitive combined financing structure and were highly responsive to the loan request.”
The Breakers Resort is comprised of six communities, each with their own clubhouse, situated on 127 acres at 9099 East Mississippi Avenue close to Cherry Creek. The low density community is currently 96 percent leased. Unit composition consists of one- and two-bedroom units that are available in 50 different floor plans that average 1,019 square feet each. Community amenities include a 55-acre residential lake, master clubhouse, fitness center, restaurant, business center, community room and private theater.
JLL closes the sale of a 512-Unit asset outside Seattle
Mountlake Terrace, Wash.—Jones Lang LaSalle has closed the sale of Creekside Village, a 512-unit community located 15 minutes north of Seattle in Mountlake Terrace, Wash. The asset commanded a $62 million sales price, making the transaction one of the largest sales in the Puget Sound for 2011. Holland Residential was the buyer.
“We had no shortage of investors interested Creekside Village,” says David Young, managing director at JLL. “The Seattle area has seen tremendous growth over the past few years and the rents are rising in correlation with that growth. Holland Residential plans to do a full renovation and repositioning of the property going forward, making Creekside Village one of the standouts in its Pacific Northwest portfolio.”
Creekside Village consists of 24 residential buildings and one residential/leasing building situated on 43 acres. Floor plans include one-, two- and three-bedroom units. Community amenities include a fitness center, two outdoor swimming pools and close proximity to a commuter station.
Boston Capital completes $244M tax credit fund
Boston–Boston Capital announced the closing of Boston Capital Tax Credit Fund XXXIV, a nationally diversified portfolio of 39 affordable apartment properties in 17 states and the District of Columbia with a total fund size of $244 million. With this closing, Boston Capital has invested $291 million in equity since January 2011.
“Demand for Boston Capital’s tax credit funds remains strong as investors continue to be faced with low-yield alternatives,” states Jack Manning, president and CEO of Boston Capital. “Fund XXXIV, due to its high-quality assets and attractive yield, drew very strong investor interest. Boston Capital’s goal as always is to achieve the best results in the marketplace by providing superior investment opportunities and teaming with the finest developer partners, producing quality affordable housing.”
The properties acquired by Corporate Fund XXXIV add an additional 3,238 apartment units to Boston Capital’s holdings. The Fund includes 11 developments for senior citizens and 28 properties which will be available to families. The properties are located in the District of Columbia and 17 states including Arizona, California, Delaware, Georgia, Iowa, Massachusetts, Maryland, Maine, New Hampshire, New Jersey, North Carolina, Ohio, Oregon, Tennessee, Texas, Virginia and Washington.
Fund XXXIV includes 1,416 newly constructed units, which will result in the creation of more than 2,150 local jobs. The fund also includes 1,822 rehabilitated units, which will create approximately 530 local jobs.
Boston Capital is currently launching Fund XXXV, a $305 million fund which is expected to close by the end of 2011. Boston Capital also continues to close business with its proprietary fund relationships.