LAFAYETTE, CO—HFF says it has secured a $34.5 million refinancing for Prana Apartment Homes, a 254-unit multi-housing property near Denver. 

Working exclusively on behalf of the borrower, LLJ Stratford Prana, LLC, HFF placed the 10-year, 4.74%, fixed-rate loan with Fannie Mae through HFF's correspondent relationship with M&T Realty Capital Corporation.  The forward rate lock refinance replaced a significantly higher rate HUD loan, which was closed to prepayment until May 2014.  The new Fannie Mae loan provided the borrower with a lower overall interest rate and five years of interest-only amortization, as well as some cash-out proceeds above the existing loan balance.  

Prana Apartment Homes is situated on an 11.1-acre site at 550 Viridian Drive adjacent to the Exempla Good Samaritan Medical Center and Kaiser's Rock Creek Medical Offices in southeastern Boulder County.  The property is a short drive from downtown Denver and downtown Boulder and is close to US-36 and Northwest Parkway.  Competed in 2010, Prana Apartment Homes has 11 residential buildings with one-, two- and three-bedroom units averaging 990 square feet each. 

The HFF team representing the borrower was led by director Josh Simon, senior managing director Eric Tupler and real estate analyst Chad Murray.

“The borrower executed their business plan to perfection with this refinance,” said Simon, “They bought the property in December 2012 at a great price with the plan to put more accretive financing in place once the assumable HUD loan opened to prepayment.  Not only did they lower their borrowing costs with this refinance, but they were able to return some of their equity as part of this financing.”