HFF Announces Financing for Apollo on H Street in Washington, D.C.

Jun 20, 2018 04:17 pm

Holliday Fenoglio Fowler, L.P. (HFF) announces the permanent financing for Apollo on H Street, a best-in-class, pre-stabilized residential, retail and office mixed-use property in Washington, D.C.’s H Street Corridor.

The HFF team worked on behalf of the borrower, a partnership between Insight Property Group and institutional investors advised by J.P. Morgan Asset Management, to secure the fixed-rate loan through TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA). HFF previously arranged construction financing and joint venture equity for the partnership in 2014 while the property was in development.

Apollo on H Street is in Washington, D.C.’s historic H Street Corridor at 600 H Street NE. With a WalkScore® of 97, the property is near numerous lifestyle and employment amenities and is five blocks from Union Station, which serves as the main rail transportation artery into and around the D.C. metro. Completed in 2017, Apollo on H Street encompasses 431 apartments with luxury finishes, including Italian cabinetry, quartz countertops, stainless appliances and wood floors throughout. The apartments were 70 percent leased at the onset of the marketing process. In addition, the property features 57,000 square feet of fully leased retail space anchored by a 40,000-square-foot Whole Foods and a 32,000-square-foot office component occupied by WeWork.

Apollo on H Street also has 60,000 square feet of indoor/outdoor amenity space, including a public lobby and leasing lounge connected to the Wydown Café; world-class art collection curated by Long View Gallery and Art Enables; penthouse with demonstration kitchen, indoor fireplace and table games; conservatory event space with access to the roof terrace; east rooftop lounge with grilling kitchens, a movie projector and expansive landscaping; west rooftop lounge with outdoor living room, grilling kitchen, two-tiered swimming pool and outdoor fireplace; indoor dog wash and outdoor dog run; gym with private studio, boxing area and Peloton bikes; and communal gardens.

The HFF debt placement team representing the borrower included Jamie Leachman, Nicole Brickhouse and Jennifer Keller.

“We are seeing more and more available capital right now for both pre-stabilized and recently stabilized assets,” Leachman said. “Given the quality, location and sponsorship, Apollo on H Street created significant interest from the lending community, providing the partnership multiple options from which to choose.”

“HFF was fortunate to have been involved in the permanent financing of the Apollo,” Brickhouse added. “Insight Property Group and J.P. Morgan have created a one-of-a-kind asset. Due to the extremely competitive environment for best-in-class, pre-stabilized assets, multiple lenders were able to get creative underwriting the asset as if it was stabilized. TH Real Estate was fantastic to work with and ultimately provided the borrower with the most long-term flexibility.”

About Insight Property Group

Insight Property Group develops, acquires and repositions well-located multifamily and mixed-use properties in the greater Washington, D.C. area. Insight’s two principals and senior leadership team members are industry veterans with a significant track record of success.

The co-founders, Richard Hausler and Michael Blum, along with their partners, Trent Smith, Bill Goodman, Sarah Davidson and Maury Stern, have decades of experience in the greater D.C. real estate market. Combined, they have acquired and developed more than 40,000 apartments and condominiums, including high-end market-rate and affordable units. They are also responsible for numerous award-winning planned communities and the development of multiple large-scale mixed-use and office properties.

Since Insight was formed in 2009, the company has assembled a portfolio of existing and to-be-developed multifamily assets that totals in excess of 3,200 units. The company expects to continue its growth by adhering to the sound investment and underwriting principles, market discipline and relationship building that have proven successful in the past. For more information, visit www.insightpropertygroupllc.com.

About J.P. Morgan Global Alternatives

J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset Management. With more than $130 billion in assets under management and over 800 professionals (as of March 31, 2018), the firm offers strategies across the alternative investment spectrum, including real estate, private equity and credit, infrastructure, transportation, liquid alternatives and hedge funds. Operating from 23 offices throughout the Americas, Europe and Asia Pacific, its independent alternative investment engines combine specialist knowledge and singular focus with the global reach, vast resources and powerful infrastructure of J.P. Morgan to help meet each client’s specific objectives. For more information: www.jpmorganassetmanagement.com

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

JAMIE LEACHMAN, (202) 533-2524
HFF Senior Director
NICOLE BRICKHOUSE, (202) 533-2507
HFF Director
OLIVIA HENNESSEY, (713) 852-3500
HFF Public Relations Specialist