HILLTOWN TWP., PA-With 80% of the 108 townhouse units at Heritage Greene occupied and 92% of them leased, Jamison-based Heritage Building Group obtains a $15-million, permanent take-out loan on the rental community. It was completed in December 2005 at a cost of approximately $50 million.

Jim Cadranell, managing director of the Florham Park, NJ office of Holliday Fenoglio and Fowler, arranged the funding from Northwestern Mutual. Rich Carroll, president of Heritage, tells GlobeSt.com the permanent funding, placed before the development is fully stabilized, replaces a construction loan. "It's longer term at a better rate," which he says is a 5.76% fixed rate for a 10-year term with a 30-year amortization.

Heritage Greene is located on a 37-acre site, of which 27 acres are open space, along Glenwood Drive. Chris Sturges, the company's assistant VP of finance, says construction began in late 2003. Units include one-, two- and three-bedroom layouts. "The average size is 1,733 sf and rental rates range from $1,445 a month to $1,895 a month for an average of $1,600."

Heritage, a prolific developer and property manager throughout the Philadelphia suburbs, has three basic divisions. The land-development component, Carroll says, "has 7,500 residential lots and approximately 1.2 million sf of commercial space in the pipeline." Heritage Homes division will deliver 320 single-family homes this year and about 500 in 2007. The company also has portfolio of a $200-million in investment properties, including apartment rental complexes, such as Heritage Greene, office buildings and some small retail centers.