Done Deals: HFF arranges $30M first mortgage for suburban Seattle multifamily community

Thursday, August 14, 2008

HFF arranges $30M first mortgage for suburban Seattle multifamily community

HARTFORD, CT – The Hartford office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged a $30 million first mortgage financing for Campus Grove Apartments,(top right photo) a 309-unit multifamily community in suburban Seattle, Washington.

Working exclusively on behalf of CREA/Legacy Federal Way, LLC, HFF senior managing director Dana Brome (top left photo) and director Susan Larkin (middle right photo) placed the five-y

ear loan with Cigna Investments.

The 5.91% fixed-rate financing will be serviced by HFF. CREA/Legacy Federal Way, LLC is a joint venture between Legacy Partners and Cornerstone Real Estate Advisers on behalf of MassMutual Life Insurance Company.

The borrower is using loan proceeds for a complete interior and exterior renovation of the community, which was originally built in 1991.

Campus Grove Apartment is situated on a 23.8-acre site at 1300 Campus Way Southwest in the southern Seattle suburb of Federal Way. The 85% leased property has 67 buildings with two- and three-bedroom townhomes featuring fireplaces and private patios/balconies. Community amenities include an outdoor swimming pool, sport court, fitness center, walking trails and meeting rooms.

“The newly renovated complex will be renamed Arcadia and is expected to achieve substantially higher rental rates and attract a higher quality of tenants than currently exists at the property,” said Brome. “Cigna provided a flexible structure, which allowed the borrower to draw full dollars today even though the asset’s NOI is not fully stabilized.”