HFF Orchestrates $44M for MF Projects in Raleigh, NYC Suburbs
- Aug 29, 2011
August 29, 2011
By Barbra Murray, Contributing Editor
The lending community’s interest in financing development projects in the booming multifamily sector is evident in premier markets across the country. Holliday Fenoglio Fowler L.P. has handily orchestrated financing for a luxury apartment community in Raleigh, N.C., and another just outside of Manhattan in Lyndhurst, N.J.
HFF arranged just over $44 million for Crescent Resources L.L.C.’s development of Gallery at Cameron Village, a 282-unit property near North Carolina State University in Raleigh. The financing package came in the form of a $34.3 million construction loan from Capital One and a $9.7 million mezzanine loan from Nationwide. The six-story apartment building is being erected at the intersection of Oberlin Rd. and Clark Ave. within the sprawling Cameron Village shopping center. Gallery, which will also feature 16,000 square feet of retail space and 8,000 square feet of resident service space, will hold the distinction of being the very first residential property at the 600,000 square-foot retail destination.
HFF also orchestrated financing for Meadow Crossing, a project located seven miles west of Manhattan at 340 Orient Way in Lyndhurst. Acting on behalf of the project developer, Russo Development, the commercial real estate and capital markets services provider secured a 24-month loan from Wells Fargo Bank N.A to fund the first phase of Meadow Crossing, which will yield 172 residences. Ultimately the property will feature a total of 296 units.
Construction of Gallery is on track to reach completion in spring 2013, while Meadow Crossing is scheduled to open its doors in 2012.
Both projects are located in high-demand apartment markets. The average vacancy rate in the Raleigh-Durham area dropped 60 basis points in the second quarter to 5.8 percent, according to a report by REIS Services L.L.C., and in Northern New Jersey, the average vacancy rate declined 30 basis points to 4.4 percent.