HFF provides $800 million in financing for 23 apartment properties

Holliday Fenoglio Fowler, L.P. recently provided financing totaling $800.45 million for a 23-property multifamily portfolio consisting of 7,289 units across eight states, including Tennessee.

The HFF team worked exclusively on behalf of Starlight Investments, a Toronto, Canada-based real estate investment and asset manager, and its closed-end fund, Starlight U.S. Multi-Family (No. 5) Core Fund.

The loan was originated as a Freddie Mac Structured Pool Transaction with five-, six- and seven-year loan terms and included both fixed- and floating-rate components. Additionally, the loan allowed flexibility with collateral release provisions and varying prepayment windows. This transaction also took advantage of Freddie Mac’s index lock program, allowing the sponsor to lock the underlying rate several months prior to closing.

The master note, which is secured by the cross-collateralized pool of 23 properties owned by Starlight U.S Multi-Family (No. 5) Core Fund, will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer.

The 23 Class-A properties are located in the Nashville, Atlanta, Austin, Charlotte, Dallas, Denver, Houston, Las Vegas, Orlando, Phoenix, Raleigh San Antonio and Tampa markets. The average year of construction for the portfolio is 2012, and the properties boast an average occupancy of 93 percent overall. Nearly half of the units (47.5 percent) were financed under Freddie Mac’s Green Advantage program, which help finance energy- and water-saving improvements that help lower operating costs for buildings, keep utility costs low and protect the environment.

The HFF debt placement team representing the borrower included senior managing director Matt Kafka, managing director Campbell Roche and analysts Matthew Williamson, Tolu Akindele and Wilson Bauer.