DALLAS—The McKenzie is a 22-story 183-unit class-A multifamily asset located at the intersection of the Highland Park and Knox-Henderson neighborhoods. The property opened in July 2018.

CrossHarbor Capital Partners recently provided $95 million financing for the multifamily community. The borrower is a partnership between StreetLights Residential and an affiliate of A.G. Hill Partners, which developed the asset.

“We intend to own The McKenzie for a very long time,” said Joseph O’Brien, president and chief executive officer of A.G. Hill Partners.

The loan was originated by the 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. CrossHarbor refinanced the existing construction loan pre-stabilization. At the time of closing, the asset was 50% leased.

“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.”

Flohr says some lenders would pass on the loan because the property isn’t stabilized.

“We are what I’d call a ‘non-institutional’ lender,” he tells GlobeSt.com. “We’re able to take a look at the level of sponsorship and a location, and not get bogged down on small issues. There’s a lot I might worry about in this world but this property leasing up isn’t one of them.”

Each unit at The McKenzie features Wolf gas ranges and custom kitchens at an average unit size of 1,600 square feet. The community features a 24-hour concierge and valet, pool, fitness center, and numerous public and private tenant spaces.

Rental rate growth in Dallas/Fort Worth slowed slightly in the last 12 months to 2.4% as 19,481 new units were delivered, with another 30,323 units under construction, according to a report by ApartmentData.com. The DFW occupancy rate remains strong at 93.6%. Once the new units are absorbed, rental rate growth is expected to resume, given the area’s projected 2.9% job growth, says the report.

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Instant Insights /

Nearly $100 Million in Refinancing Goes to Highland Park Asset

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