Boston – CrossHarbor Capital Partners, a Boston-based investment management firm that invests in core-plus, value-add, and opportunistic commercial real estate transactions throughout the United States, announced a $95 million financing for The McKenzie, a recently opened multifamily community in Dallas, Texas.
CrossHarbor refinanced the existing construction loan pre-stabilization; The McKenzie was approximately 50% leased at loan closing.
The loan was originated by the firm’s recently launched CrossHarbor Senior Debt Income Fund, an open-end fund focused on the origination of debt investments secured by institutional-quality real estate nationwide. The borrower for the loan is a partnership between StreetLights Residential and an affiliate of A.G. Hill Partners, who developed the asset in 2018. Dallas-based A.G. Hill Partners is a family-office that has partnered in more than 30 real estate projects over the last ten years with an estimated value in excess of $2.0 billion. StreetLights is a privately-owned real estate investment and development firm based in Dallas with an impressive trackrecord, especially in the Dallas market. StreetLights is an existing sponsor relationship with CrossHarbor on other transactions.
The McKenzie is a 22-story, 183-unit, Class A+, luxury multifamily asset located at the intersection of the Highland Park and Knox-Henderson neighborhoods in Dallas, Texas. The property is recently constructed and opened in July 2018; at the time of closing, the asset was 50% leased. Each unit features includes stainless steel appliances including Wolf gas ranges, custom kitchens, and high-end finishes throughout at an average unit size of 1,600 square feet. The community features a 24-hour concierge and valet, resort style pool, state-of-the-art fitness center, and numerous indoor and outdoor public and private tenant spaces.
“The McKenzie is another example of StreetLights’ ability to develop best-in-class luxury properties across the Sun Belt region,” said Joseph O’Brien, President and Chief Executive Officer of A.G. Hill Partners. “We intend to own The McKenzie for a very long time. CrossHarbor proved to be a creative, flexible source of capital for this investment.”
“This transaction demonstrates CrossHarbor’s ability to identify attractive debt investment opportunities by providing creative financing solutions to strong sponsors that own high quality real estate,” adds Richard Flohr, Managing Director and Portfolio Manager for the CrossHarbor Senior Debt Income Fund. “Our ability to provide construction takeout financing prior to the property’s stabilization serves as an illustration of our debt platform’s broad capabilities. We are thrilled to further our relationship with Streetlights and A.G. Hill.”