Dealmaker: HFF Arranges $52.5M in Colorado
Holliday Fenoglio Fowler, Houston, arranged $49.5 million for Liberty Creek Apartments, a 584-unit garden-style community in east Denver suburb Aurora, Colo.
HFF Associate Director Brock Yaffe led the debt placement team. He worked on behalf of the borrower, a joint venture between BMC Investments and Oak Coast Properties, to place the 10-year acquisition financing with Freddie Mac’s Capital Markets Execution program. The securitized loan bears interest at a fixed rate of 4.14 percent with five years of interest-only payments. HFF will service the loan through its Freddie Mac Program Plus Seller/Servicer program.
Liberty Creek Apartments has 42 two-story buildings with one- and two-bedroom units ranging from 653 to 882 square feet. Oak Coast Properties Managing Partner Phillip Nahas said his firm renovates assets in markets with strong and sustained employment and wage growth. “Target assets have strong cash flow and room for bottom line growth through property enhancements and increased rents,” he said.
HFF also marketed and arranged financing for two Class A office assets, 1025 and 1075 Main Street in Waltham, Mass. Senior Managing Director Coleman Benedict and director Ben Sayles led the HFF investment sales team representing the seller, an affiliate of KBS Real Estate Investment Trust Inc. They procured the buyer, an affiliate of The Davis Cos., which paid $52.5 million for the asset, and secured a seven-year loan through Brookline Savings Bank and First Niagara Bank. Gramercy Property Trust advised KBS on the transaction.
“Waltham has emerged as one of Boston’s strongest suburban office markets and it is also experiencing one of the most significant building booms of the last 30 years, welcoming 14 new restaurants, more than 1,600 hotel rooms and several major mixed-use developments including City Point and 1265 Main Street,” Sayles said.
HFF Senior Managing Director Riaz Cassum led the debt-placement team with Director Brett Paulsrud. Built by BayBank in 1980 as the bank’s major operations center, 1025 and 1075 Main Street served similar functions for BankBoston, Fleet and current anchor tenant Bank of America.
