$49.1M in refinancing secured for the Millennium at Hometown development
JLL Capital Markets secured the loan for Phase II of the Class A multi-housing project
JLL Capital Markets announced today that it arranged a $49.1 million refinancing for the Millennium at Hometown, a to-be-completed, Class-A, multi-housing project comprising 306 apartments and 11,697 square feet of retail located at 6021 Parker Blvd. in North Richland Hills, Texas.
JLL worked on behalf of the borrower, Sovereign Properties, to secure the floating-rate loan with Asia Capital Real Estate (ACRE). Construction is nearing completion with the first building projected to TCO in December 2020.
The development is in the burgeoning North Richland Hills submarket at the intersection of Grapevine Highway and Precinct Line Road. This submarket has seen a total rent growth of 30% since 2010, all while maintaining average occupancy of 94%. The area has also become a robust employment hub, with over 70,000 residents, 1,200 businesses and 30 major employers, including a surge in headquarter set ups from companies like Tyson and XPO Logistics.
JLL’s Capital Markets team representing the borrower was led by Senior Managing Director Greg Nalbandian and Director Jesse Wright.
According to JLL, this bridge loan was signed up during the height of the COVID pandemic illustrating the strength of the multi-housing capital markets and the liquidity that continues in this sector for well-conceived projects during highly challenging macro climates.
“We pride ourselves on our ability to provide institutional developers the liquidity needed to execute on their business plan, especially in tough market environments,” said Daniel Jacobs, Head of Origination at ACRE. “JLL was instrumental in structuring this deal, and we are confident that it will set Sovereign Properties up for success at Millennium Hometown.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of nearly 93,000 as of June 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Sovereign Properties
Sovereign Properties is a commercial real estate development firm with a primary focus on multifamily. Since 2004, the firm has been engaged in the concept, development, construction and project management of income generating real estate in strong growth markets across the United States. Sovereign Properties has built over 4,000 units across the United States, with over 1,000 units including Millennium Hometown under construction and an additional 580 units planned in 2020.
About Asia Capital Real Estate (ACRE)
Founded in 2011, ACRE is a global real estate private equity firm managing capital for institutional and family office investors through a series of private equity and debt funds with AUM exceeding $2.1 billion. A specialist investor in multifamily housing with a vertically integrated platform, ACRE’s strategies focus on direct real estate equity and credit investments and are concentrated in the United States, with additional properties currently in development in Southeast Asia and the United Kingdom. Since inception, ACRE has acquired, operated, developed and made loans on over 22,000 apartments across 75 properties and 31 cities.