Dealmaker: HFF Arranges $153M for Multifamily


Holliday Fenoglio Fowler LP arranged $153 million in financing for multifamily housing properties in Austin, Texas; Harrison, N.J.; and Los Angeles.

HFF’s Dallas office arranged $65 million in financing to acquire Cielo and Madrone, two Class A, garden-style multi-housing communities totaling 554 units in west Austin, Texas. HFF worked exclusively on behalf of Toronto-based Starlight Investments Ltd., to place the seven-year, floating-rate loan with a national bank.

The newly developed properties were completing lease-up and nearly stabilized when the financing closed. The adjacent properties are at 3499-3501 Ranch Road and 620 South, seven miles southwest of Lake Travis.

Completed in 2014, Cielo has 28 three-story buildings on 38 acres that house 326 one-, two- and three-bedroom units The Madrone is on 40 acres directly adjacent to Cielo and was completed in 2015. The eight-building property has 228 one-, two- and three-bedroom units. Both properties include amenities such as resort-style swimming pools with sun decks, outdoor lounges, grilling stations, fire pits, state-of-the-art fitness centers with yoga/spin studios, clubhouses with Wi-Fi, lounges with televisions, game rooms, full entertaining kitchens, business centers and detached garages.

The HFF debt placement team representing the borrower was led by senior managing director Matt Kafka and director Campbell Roche.

HFF’s Florham Park, N.J. office secured $73 million in financing for Vermella Harrison, a 398-unit, Class A, mid-rise multi-housing community in Harrison. HFF worked exclusively on behalf of the borrower, Russo Development (Russo), to place the 10-year, fixed-rate loan through John Hancock Real Estate Finance Group.

Vermella Harrison is at 1100 Frank E. Rodgers Boulevard South in Harrison’s waterfront redevelopment area, also known as the Riverbend District. Situated on a three-acre site, the transit-oriented property is 800 feet from the Harrison PATH station, six miles north of Newark Liberty International Airport and convenient to Interstates 280, 78 and 95 providing access around northern New Jersey and into Manhattan.

The five-story property has 120 studio, 260 one-bedroom and 18 two-bedroom units averaging 717 square feet with a central parking structure. Community amenities include a 3,500-square-foot fitness center with yoga studio; outdoor heated swimming pool; bocce ball court; putting green; rooftop dog run; rooftop terrace with pergolas, fireplace and grilling stations; large courtyards; concierge service; and personal storage lockers on each floor. Additionally, a 4,000-square-foot amenity center is located adjacent to the main lobby and features a clubroom, conference room, bar and pool tables.

The HFF debt placement team representing the borrower was led by senior managing director Thomas Didio. “The ability to lease this property as quickly as Russo did is a testament to both the quality of the asset and its proximity to New York City train access,” he said.

HFF’s Los Angeles office arranged $15 million in financing for HoM @ West Temple, a 67-unit, Class A apartment community in Los Angeles’ Silver Lake submarket.

HFF worked exclusively on behalf of the borrower, Sharp Capital, to place the seven-year, 3.51 percent loan with Principal Real Estate Investors. Sharp completed the property in February; the new financing will replace existing construction debt. Principal offered an early rate lock, securing the interest rate three months prior to funding when the property was 50 percent pre-leased in order for Sharp to complete leasing efforts.

HoM @ West Temple features a four-story building with one level dedicated to parking and a 750-square-foot café on the ground floor. Units have stainless steel appliances, quartz stone countertops, designer fixtures, walk-in closets, polished concrete floors or distressed wood-style flooring, in-unit security systems and balconies/patios offering views of the garden, city skyline or Hollywood Hills. Community amenities include a landscaped courtyard, garden, grilling area, 24-hour fitness center, clubhouse with pool table, media center, car charging station and on-site management.

The property is at 3221 West Temple Street off Highway 101 and Silver Lake Boulevard in the Silver Lake submarket, proximate to Dodger Stadium, Griffith Park and downtown Los Angeles.

The HFF debt placement team representing the borrower was led by director Jeff Sause.