Multifamily Lending

KeyBank Real Estate Capital provided a $67.5 million bridge loan to assist The Hamilton Company with the acquisition of Hill Estates — a 396-unit multifamily residential community located in Belmont, Massachusetts, and two office properties located nearby at a campus off Brighton Street in the town’s easternmost neighborhood. The bridge loan will provide adequate time for the sponsor to best position the asset for a permanent agency financing.

The Hamilton Company will staff an on-site management office and operate all property management and maintenance functions for the 396 units and all common areas. Residents will also have access to the Hamilton’s full range of online tenant services, including online rent payments, maintenance requests, and renter’s insurance.

The two off-site commercial properties will be marketed and sold by The Hamilton Company as they are not part of the core business and revenue model of the Hill Estates residential community. The company plans to make significant capital improvements to the property including the renovation of all units.

“We are thrilled to have played a role in assisting Hamilton grow their robust portfolio through the addition of a legacy multifamily property in a preeminent Boston community,” said T.J. Hussey, relationship manager, KeyBank Real Estate Capital Income Property Group. “We look forward to seeing Hill Estates reach its full potential with the planned capital improvements and operations under Hamilton’s stewardship.” 

Founded in 1954 with the acquisition of a six-unit building, The Hamilton Company, owned by Harold Brown, has become one of the largest privately held real estate organizations in New England. The acquisition of the Belmont property enlarges their portfolio of premier residential properties to nearly 6,000 units in the Greater Boston area.

The transaction includes a $8,137,500 ($59,835/unit) non-recourse, first mortgage loan secured by a Class B, 136-unit garden style apartment community, known as Parkwyn Townhomes, located in North Richland Hills, Texas. Built in 1984, the property comprises eight two-story residential buildings and one clubhouse, situated on 4.82 acres. Parkwyn Townhomes is currently operating as a traditional market-rate apartment building. Upon loan closing, the property will enter the Pecos County Housing Finance Corporation (HFC) ownership structure where the title will be transferred to the HFC and the property will be ground-leased to the borrower. The borrower will become the leasehold estate owner which will qualify for a 100% real estate tax exemption, so long as 90% of units are set aside for occupancy by residents with annual incomes of 140% of the Area Median Income (AMI), including 50% of the units by residents with annual incomes of 80% of the AMI. The loan, co-originated by KeyBank and Argentic on a 35/65 split and structured with a 5-year interest only term, will be used to refinance the existing debt on the property.

The transaction includes a $39,091,300 ($137,645/unit) non-recourse, first mortgage loan secured by a 284-unit garden-style apartment complex, known as Stoneplace Apartments, located in Molalla, Oregon. The complex, built in three phases between 2009 and 2016, contains 30 one- two- and three-story residential buildings and one single-story leasing office/clubhouse. The 561 parking spaces provide an optimal parking ratio of 1.98. The loan is structured with a 35-year term, amortizing on a 35-year schedule, and will be used to pay existing debt of the property.

The transaction includes a $10.8 million ($139,408/unit) non-recourse, first mortgage loan secured by a 100-unit, partially age-restricted, garden-style apartment complex known as Overlook Apartments, located in Middletown, New York. Built in 1983 and renovated in 2007, the property consists of six, two-story residential buildings and one community/office building. The improvements are situated on a seven-acre site. The proposed loan will be used to refinance the property's existing debt. The loan is structured with a seven-year term, and subsequent to a three-year interest only period, amortizes on a 35-year schedule.

The transaction includes a 1,068-bed (313-unit) garden-style, off-campus student housing community in Southern Florida. Built in 2001 and renovated in 2022, the property consists of 24, 3-story apartment buildings. The proposed loan will be used to refinance existing debt on the property. The loan is structured with a 10-year term, and subsequent to a 5-year interest only period, amortizes on a 30-year schedule. The improvements are situated on a 41.2-acre site.

The transaction includes a $15,623,000 ($195,288/unit) non-recourse, first mortgage loan secured by 80-unit, garden style apartment complex known as The Valley Apartments located in Dublin, CA. Built in 1970, the property consists of four 2-story apartment buildings. The improvements are situated on a 2.92-acre site. The proposed loan will be used to refinance the existing debt of the property. The loan is structured with a 5-year term, and subsequent to a 2-year interest only period, amortizes on a 30-year schedule.

KeyBank financed a $62.2 million, five-year, full-term interest only, non-recourse Life Company debt fund loan for the refinance of Aspire Cape Coral apartment complex in Cape Coral, Florida.

Built in 2022, this 319-unit, Class A luxury rental community is within short driving distance of shopping centers, parks, healthcare, and education facilities. Aspire Cape Coral offers one-, two-, and three-bedroom apartment options, in addition to its outdoor-focused resort-style amenities that include a clubhouse, pool, fitness center, and pet conveniences. The concrete-built community offers peace of mind in an area still recovering from the impact of recent hurricanes.

The transaction includes a $44.1 million ($137,962/unit) non-recourse, first mortgage loan secured by a 320-unit, garden style apartment complex known as The Braxton, located in Palm Bay, Florida. Built in 1987, the property consists of 16 residential buildings and non-residential buildings. The property is situated on 24.74 acres of land. The proposed loan will be used to refinance the existing debt of the property. The loan is structured with a five-year term, and subsequent to a three-year interest only period, amortizes on a 30-year schedule.

The transaction includes a $15.2 million ($169,478/unit) non-recourse, first mortgage loan secured by a 90-unit townhouse apartment complex known as Tammy Brook Apartments, located in Weymouth, Massachusetts. Built in 1913 and 1968, and renovated in 2010, the property consists of 12, two-story buildings and a single -family home, situated on 5.92-acre land. The proposed loan will be used for financing the acquisition of the property. The loan is structured with a 10-year term, and subsequent to a seven-year interest only period, amortizes on a 35-year schedule.

The transaction includes a $26.7 million ($124,785/unit) non-recourse, first mortgage loan secured by a 214-unit, garden-style apartment complex known as Creekpointe Apartments, located in Midlothian, Virginia. Built in 2003, the property consists of 16, three- and four-story apartment buildings, situated on 15 acres of land. The proposed loan will be used for refinancing the existing debt. The loan is structured with a seven-year term, and subsequent to a three-year interest only period, amortizes on a 35-year schedule.

The transaction includes a $16.3 million ($104,673/unit) non-recourse, first mortgage loan secured by a 156-unit, garden-style apartment complex known as Overlook at Brook Run I, located in Richmond, Virginia. Built in 2001, the property consists of 16, two- and three-story apartment buildings, situated on 11.06 acres of land. The proposed loan will be used for refinancing the existing debt. The loan is structured with a seven-year term, and subsequent to a three-year interest only period, amortizes on a 35-year schedule.

The transaction includes a $46.4 million ($141,494/unit) non-recourse, first mortgage loan secured by a 328-unit, garden style apartment complex known as Lake Cameron Apartment Homes in Apex, North Carolina. Built in 1999, the property is comprised of 14, three-story residential buildings, eight detached garage buildings, one of which is utilized for maintenance, and a clubhouse with leasing office and fitness and laundry facility. The property is situated on 23.94 acres of land. The proposed loan will be used for acquisition of the property. The loan is structured with a five-year interest only term.