December – Briefs/Finance

Starwood Originates $475M for Manhattan Acquisition, Redevelopment; Blackstone Real Estate Fund Raises $13B; Walker & Dunlop Lands $67.5M for Virginia High-Rise; HFF Secures $91M for D.C. Mixed-Use Development; Red Stone Provides $71M for Affordable Properties in Texas; Bellwether Provides $75M for Seven Properties; First Potomac Closes $22M Secured Financing; Aimco Closes $190.7M for Calif. Redevelopment.

Starwood Originates $475M for Manhattan Acquisition, Redevelopment

701 Seventh Ave.

Starwood Property Trust and Starwood Capital Group have completed the co-origination of a $475 million first mortgage loan and mezzanine loan for the acquisition and redevelopment of a 10-story retail building located at 701 Seventh Ave. in Midtown Manhattan. The building is located on the northeast corner of the Times Square bowtie. The loan will have an initial funding of $375 million, with $100 million of future funding for redevelopment costs, and also contains equity participation from the lender. The primary sponsor is The Witkoff Group.

The $430 million acquisition was completed by Maefield Development, Infinity Urban Century, The Witkoff Group and New Valley. The purchase clears the way for the construction of a 340,000-square-foot, 36-story, multi-use development that will contain new retail space, a hotel tower and the nation’s largest single LED screen.

Blackstone Real Estate Fund Raises $13B

The Blackstone Real Estate Partners VII fund has closed after raising $13.3 billion in 13 months from more than 250 global investors. It is the largest opportunistic real estate fund ever raised, according to Blackstone. Approximately 35 percent of the fund’s capital has already been committed in a diverse set of asset classes and locations that saw the New York-based investment and advisory firm’s real estate unit snapping up retail, lodging, office and industrial assets in the United States. U.S. public pension plans made up the largest category of investors in the fund. Blackstone’s real estate unit manages more than $50 billion in equity, as of the end of the third quarter. Several large deals were finalized during the spring and summer, including BREP VII’s acquisition in July of 15 shopping centers from Regency Centers Corp. for $321 million.

Walker & Dunlop Lands $67.5M for Virginia High-Rise

Walker & Dunlop Inc. has arranged $67.5 million in financing for Huntington Gateway Apartments, a 443-unit high-rise residential community located in Alexandria, Va. The loan was provided by New York Life Insurance Co. and structured with a 10-year term and a 30-year amortization for the borrower, Huntington Apartment Associates L.P. The 447,712-square-foot asset is located within walking distance of the Huntington Metro station and features 30,000 square feet of retail space.

HFF Secures $91M for D.C. Mixed-Use Development

Holliday Fenoglio Fowler L.P. has secured $91 million in construction/permanent financing for Cathedral Commons, a 264,272-square-foot mixed-use development in Washington, D.C. The firm worked on behalf of the borrower, a joint venture between Giant of Maryland and The Bozzuto Group, to secure the 13-year, fixed-rate construction/permanent financing through Northwestern Mutual. When the project is finished, it will include 137 luxury rental units, eight luxury townhomes and 128,852 square feet of ground-level retail space that is 60 percent pre-leased and will be anchored by a 56,000-square-foot Giant Food grocery store.

Red Stone Provides $71M for Affordable Properties in Texas

Red Stone Partners has structured and acquired six series of tax-exempt bonds, the proceeds of which provide acquisition, renovation and permanent financing for six affordable multi-family communities in Texas. The assets were picked up by affiliates of Dalcor Cos., a Dallas-based real estate firm. The $71.1 million in bonds were issued by the Texas State Affordable Housing Corp. Indianapolis-based City Real Estate Advisors will also invest approximately $33 million into the properties through its sponsorship of LIHTC limited partnerships. The mid-1990s vintage properties are located in Houston, Dallas, Beaumont, Wichita Falls, Bryan and Huntsville.

Bellwether Provides $75M for Seven Properties

Bellwether Enterprise Real Estate Capital L.L.C., the multi-family subsidiary of Enterprise Community Investment Inc., has provided approximately $75 million to a Cincinnati-based owner/operator for the refinancing of five garden-style apartment properties in Texas and two garden-style properties in Ohio. All seven assets are workforce housing apartments. The $75 million loan was originated in Bellwether Enterprise’s Cincinnati office and was closed and securitized using a Freddie Mac Capital Markets Execution.

First Potomac Closes $22M Secured Financing

First Potomac Realty Trust has closed on a $22 million mortgage loan with EagleBank that is secured by its Greyhound property located at 1005 First St., N.E., in Washington, D.C. The two-year, interest-only mortgage has a one-year extension option and a variable interest rate of LIBOR plus 2.75 percent, with a floor of 5 percent. The majority of the net proceeds were used to repay a portion of the balance outstanding under First Potomac’s unsecured revolving credit facility and the remainder was used for general corporate purposes.

Aimco Closes $190.7M for Calif. Redevelopment

Apartment Investment and Management Co. has closed financing to fund its Lincoln Place redevelopment in Venice, Calif. The 35-acre property is located close to both Venice Beach and Santa Monica Pier. The community, which was built between 1949 and 1951, already saw a partial redevelopment in 2011, when Aimco redeveloped four buildings with 65 apartment homes. Over the next year, Aimco will redevelop another 41 buildings that include 631 now-vacant apartment homes. The plan also includes the construction of 13 new buildings with 99 units, a 5,000-square-foot leasing center and a 6,100-square-foot fitness center and pool area.

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