DENVER, CO – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged a $23.97 million refinancing for Clearview Apartments, a 376-unit apartment community in Holland, Michigan.
HFF worked exclusively on behalf of Cottonwood Residential and the owners to place the 10-year, fixed-rate loan with Freddie Mac’s CME Program. The securitized loan will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.
Clearview Apartments is located at 12100 Clearview Lane approximately six miles east of Lake Michigan and approximately 27 miles to downtown Grand Rapids via Interstate 196. The property comprises 20 three-story buildings with one-, two- and three-bedroom units featuring in-unit washers and dryers, walk-in closets and private patios or balconies. The 32.16-acre, lushly landscaped community incorporates man-made lakes, walking paths and amenities, including a swimming pool, sand volleyball and tennis courts, playground, dog park, clubhouse, 24-hour fitness center and business center. Clearview Apartments is 94 percent occupied.
The HFF debt placement team representing the borrower was led by senior managing directors Eric Tupler and Matt Kafka and managing director Josh Simon.
About Cottonwood Residential: Cottonwood Residential, formerly Cottonwood Capital, (“Cottonwood”) was formed in 2004 with a business plan to acquire well-located multifamily properties in high growth states. In its first phase of acquisitions, Cottonwood acquired over 6,000 units by raising equity from investors using a Tenant-in-Common structure. This acquisition phase continued through the first part of 2008, where it focused primarily on buying stable assets in strong infill locations where competing product could not be easily developed.
Cottonwood’s property management expertise was born out of a need to better control the strategy and to better optimize cost allocations at each of their properties. Cottonwood began managing its own properties in 2006 and began managing for other Tenant-in-Common sponsors and investors in 2009. Since then, Cottonwood has dramatically grown its management size, capacity, and capabilities. Cottonwood continues to grow its business through referrals from investors, registered representatives, broker dealers and even former competitors. Cottonwood’s growth is beneficial to investors and residents as it allows the company to provide streamlined efficient services and benefits. As a result, it is able to pass along real savings in areas such as revenue management software, insurance, communications, accounting software, bulk cost purchasing, general vendor accounts, and tax appeal costs.
Cottonwood now operates as a Real Estate Investment Trust, which has acquired Tenant-in-Common interests in multiple properties. These interests were acquired from investors in a way that allowed the investors to continue their deferral of taxes for several additional years. The principals of Cottonwood are investors in the company, alongside the other investors of Cottonwood, creating complete unity and alignment of interests between the executives leading Cottonwood and its investors.
About HFF: Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.