NKF Originates $87M Freddie Mac Refi on Philly-Area Rental Community
Harbor Group International (HGI) has nabbed just under $87 million in Freddie Mac-backed debt from Newmark Knight Frank (NKF) to refinance Exton Crossing Apartment Homes, a garden-style community in Exton, Pa., Commercial Observer has learned.
The 10-year, floating rate loan will retire existing debt on the 405-unit asset.
NKF’s multifamily capital markets division was responsible for the loan’s origination, led by Henry Stimler, Matthew Mense and Bill Weber, who worked alongside Dan Sarsfield, on behalf of HGI in securing the financing.
“With the onset of uncertain times, we’re witnessing a trend of multifamily property owners re-evaluating their in-place financing and utilizing several very attractive options as well as historically low rates to lock in those better rates along with flexible terms,” Stimler said in a statement. “This approach allows them to adjust their business plan; owners across the multifamily spectrum should be looking into their portfolios and consider this type of strategic financial adjustment.”
Built in 1998 and located at 201 Iron Lake Drive in Exton, Pa., just about 30 miles west of Philadelphia, the complex sports one-, two- and three-bedroom residences, with in-unit washers and dryers as well as private patios or balconies. Amenities at the site include a fitness center named “HarborFit,” a swimming pool and outdoor barbecue areas as well as surface and assigned, covered and garage parking. There are also two commercial tenants on the property; a hair salon and a daycare, according to NKF.
The property is a neighbor to four different shopping centers and is surrounded by bars and restaurants. Its location also puts it within walking distance of schools and the sizable Exton Park as well as the Southeastern Pennsylvania Transit Authority’s Exton regional train station.
T. Richard Litton, Jr., the president of Harbor Group International said in prepared remarks that the firm “continues to focus on doing what’s best for each asset, from operations to capital improvements to the optimal financing options,” and that it “remains poised to make the most of current market conditions to maintain the performance of each of its properties and provide the best services to its residents while simultaneously providing attractive returns to investors.”
Monthly rents at location range from around $1,380 for one-bedrooms to around $4,300 for three-bedroom apartments, according to information from Apartments.com.