Cortland Partners, a prominent Atlanta-based multifamily investor, has successfully secured a $192.1 million refinancing package for a portfolio of four properties encompassing 1,137 units. The communities are strategically located in Miami, Denver, and Dallas, with the financing arranged by Walker & Dunlop Capital Partners through Freddie Mac.
Key Takeaways
- Cortland Partners refinanced a four-property, 1,137-unit multifamily portfolio.
- The portfolio is spread across Miami, Denver, and Dallas.
- The total refinancing amount is $192.1 million, facilitated by Freddie Mac and arranged by Walker & Dunlop.
- The properties have undergone significant value-add renovations.
Portfolio Details
The largest asset in the refinanced portfolio is Cortland at the Hammocks I & II in Miami, a substantial 720-unit community. Also included are Huntington Glenn, a 224-unit property in Dallas, and Cortland Congress Park, a 193-unit community in Denver. Senior Managing Director Stephen Farnsworth of Walker & Dunlop led the team that finalized the refinancing for Cortland, a long-standing client.
While specific loan terms were not disclosed, Yardi Matrix data indicates that Walker & Dunlop originated a $32.9 million, seven-year Freddie Mac loan for Cortland Congress Park, maturing in October 2032. Additionally, a $23.8 million, seven-year Freddie Mac loan, also maturing in October 2032, was arranged for Huntington Glen.
Cortland also assumed existing loan balances for the Miami properties. This included a $46.9 million outstanding balance on a 10-year Fannie Mae loan due in June 2027 and a $7.2 million balance on an eight-year Fannie Mae loan, both originally CMBS loans from Arbor Realty Trust. Details regarding the Freddie Mac refinancing for the Florida assets were not made public.
Value-Add Strategy
According to Cortland, a key factor in securing this refinancing was the successful execution of a value-add strategy and capital improvement plan across the properties. These initiatives involved substantial interior and exterior upgrades, refreshed apartment interiors, enhanced amenity spaces, and targeted building and site improvements, repositioning the assets within their respective markets.
Property Overviews
Cortland acquired the Hammocks properties in Miami in August 2021 as part of a larger portfolio transaction. Cortland at the Hammocks I & II, located at 1528 SW 104th St., comprises 720 units built between 1986 and 1987, currently operating at approximately 94.6 percent occupancy.
Huntington Glen, situated at 2900 Harwood Road in Bedford, Texas, is a 224-unit property built in 1983. It boasts a high occupancy rate of 98.2 percent and offers a mix of one- and two-bedroom apartments.
Cortland Congress Park, located at 910 Colorado Blvd. in Denver, is a 193-unit community built in 2006 and is nearly fully occupied at 99 percent. The property offers a range of studio, one-, and two-bedroom floorplans, with some units designated for low-income housing.
Recent Transactions
This refinancing follows closely on the heels of Cortland’s recent $1.6 billion all-cash acquisition of a 19-property, 5,793-unit multifamily portfolio from Elme Communities. This significant transaction, concentrated in Northern Virginia, metro Atlanta, and Washington, D.C., marks Cortland’s largest deal to date and underscores its active role in the multifamily market.