HFF secured a $45 million fixed-rate loan through Freddie Mac’s Capital Markets Execution program to refinance a 408-unit, garden-style apartment community in Denver, Commercial Observer has learned.
The 10-year securitized loan on the Parc at Cherry Creek replaces existing debt that carries a remaining term of three years and no interest-only period, according to an HFF spokesperson.
The national brokerage worked on behalf of the sponsors, PCC Partners LLC and Iron River Management LLC, to secure the mortgage, which bears an interest rate of 3.89 percent and five years IO.
The loan will be serviced by HFF through the firm’s Freddie Mac Program Plus Seller/Servicer authorization.
The Parc at Cherry Creek offers rental units ranging from 782 to 1,089 square feet. Amenities at the property include a 24-hour fitness center, pool and spa, tennis, basketball and sand volleyball courts, and detached garages.
Located on nearly 20 acres at 7555 East Warren Drive in southeast Denver, the community is within walking distance to retail shops, restaurants and a nearby country club.
Managing Director Josh Simon and Real Estate Analyst Kristian Lichtenfels led the HFF debt placement team representing the borrower.
“Given that we are witnessing the sunset of the currently favorable interest rate environment, it’s smart business for our team to make this move,” said Jonathan Ringham, manager of PCC Partners and president of Iron River Management, which has been involved in the ownership, development and management of multifamily real estate since the early 1970s.
“Locking in this low rate for the next decade provides enormous flexibility in our future operations,” he added. “HFF was instrumental to us as a partner in getting this deal done from beginning to end.”