Barings Finances Harborwalk at Plymouth Station Phase II
Apr 22, 2021
Barings Continues to Execute on Apartment Strategy through Debt Financing
Barings, one of the world’s leading financial services firms, announced today that it has committed to finance a mezzanine development loan for phase II of the Harborwalk at Plymouth Station project, a suburban multifamily development in Plymouth, Massachusetts, a suburb of Boston. This investment was secured for a Barings equity strategy, which permits select amounts of debt investment exposure.
This commitment follows Barings’ initial mezzanine construction financing for phase I of the project in 2018, demonstrating Barings’ continued conviction in the project and in its suburban garden style apartment investment thesis. “We are eager to participate in Phase II, as Phase I proved our underwriting with strong leasing and market demand” said Philip Adkins, Head of Barings U.S. Real Estate Debt Origination. “We look forward to continuing our partnership with Harborwalk’s sponsors, Cathartes and Janco Development, in this follow-on phase.”
Harborwalk at Plymouth Station phase II will include a 147-unit Class A garden-style apartment complex and 7,800 square feet of retail. Phase II will be adding to already existing 155 residential units and a suite of amenities including a fitness center, pool, outdoor BBQ area, roof deck, top floor clubhouse, and recreational equipment storage executed in Phase I. The project scopes two additional phases, phase III and IV, which would allow for an additional 350+ units, commercial office space, boutique hotel and 200+ slip marina. The project is well located between Boston, Providence and downtown Plymouth, with direct access to the MBTA Plymouth commuter rail train station. Barings views Plymouth as a desirable submarket of Boston, with compelling year over year rent growth.
Barings’ global real estate platform spans both equity and debt and is structured to uncover the interconnectivity between markets, economies, and cycles. “This transaction demonstrates our ability to identify relative value plays, with the objective of making better informed decisions on behalf of our clients” said John Ockerbloom, Co-Head of U.S. Real Estate. “We have the ability to source debt opportunities for appropriate equity mandates, accessing select sectors and markets in accretive ways, which many competitors don’t have the capability to do” explained Chris Berry, Portfolio Manager for Barings U.S. Real Estate.
Consistent with Barings’ commitment to sustainability, the Harborwalk project is designed to achieve a HERS Index score of 55, consisting of high efficiency common area, unit lights and boilers, smart thermostats, low U-Factor windows, electric car stations and the ability to incorporate solar onto roofs.
Barings is a $345 billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.
*Assets under management as of December 31, 2020.
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