BOSTON—The ownership of the expansive Harbor Point on the Bay housing development here has secured $215 million in multifamily senior debt.
The refinancing deal was reported by KeyBank Real Estate Capital of Cleveland, which arranged the transaction for the 1,284-unit mixed affordable and market rate waterfront development via a loan placed through Freddie Mac for the project sponsor Corcoran, Mullins, Jennison, Inc. of Boston. Dirk Falardeau, vice president with KeyBank Real Estate Capital, says the new loan replaces prior CMBS debt on the property.
The deal, which took about a year to finalize, features a 20-year term, 35-year amortization period, 10 years of interest-only and a sub 3.65% interest rate. Falardeau originated the transaction under the direction of KeyBank Real Estate Capital regional manager, Todd Goulet, and was assisted by KeyBank's affordable housing team vice president Al Beaumariage and senior relationship manager Mathew Purtell.
He says the attractive terms of the Freddie Mac loan are very unusual for the marketplace. Falardeau says the Harbor Point on the Bay ownership is using the financing “to fully fund their reserve to maintain the quality of the property going forward.”
Located on the waterfront on approximately 43 acres, public housing was originally built on the site in the 1950s. By the late 1970s the blighted development was neglected and crime-ridden and many of the units at the time were vacant, according to published reports. Eventually, the city of Boston privatized the entire project and the community was successfully redeveloped as an affordable and market rate project by the Corcoran firm in the mid 1980s.
Harbor Point on the Bay consists of 22 mid-rise buildings and 31 townhomes and a small retail component that features grocery and laundry, as well as daycare and space for extensive tenant services.
Falardeau says that Harbor Point was one of the early success stories of the federal Hope VI federal housing program. He adds that the property continues to be a highly successful affordable and market rate development that is a blend of senior citizens, University of Massachusetts students and low-income families. “It is such an eclectic community,” he says.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
