An affiliate of Harbor Group International has secured an $86.6 million Freddie Mac floating-rate loan to facilitate the acquisition of Alcove at Seahurst in Burien, Wash., Commercial Observer has learned. NewPoint Real Estate Capital provided the loan.
Constructed in 1948 as part of the post-World War II housing boom, the garden-style Alcove at Seahurst encompasses 44 buildings across approximately 36 acres at 14001 Ambaum Boulevard SW. Alcove at Seahurst apartments offer one-, two- and three-bedroom units. Community amenities include a playground, coffee bar, fitness center, business lounge, and grilling and picnic areas.
“This Freddie Mac execution allowed us to hold proceeds based on an advantageous sizing rate for 60 days during a turbulent market,” said Geri Borger Urgo, head of production for NewPoint. “As such, we were able to provide Harbor with certainty of terms throughout their acquisition process.”
With an interest-only period of five years, the seven-year Freddie Mac loan provides Harbor with the flexibility to execute a promising value-add renovation. Nearly all units qualify as mission-driven, with 99 percent of units affordable at 80 percent of average median income (AMI) and 20 percent affordable at 60 percent of AMI, according to the press release.
“Alcove at Seahurst will see high demand given its affordability and the lack of new supply in the surrounding area,” said Greg Heller, managing director of acquisitions at Harbor Group International. “Our investment strategy hinges on pairing acquisitions with prudent leverage and the best loan terms available. The NewPoint team confidently delivered during a challenging environment with a structure and pricing that creates value for both our residents and investors.”
Emily Fu can be reached at firstname.lastname@example.org.