Brookstone Apartments Acquired With $10.2 Million in Financing Arranged by Holliday Fenoglio Fowler.

Business Editors

CHAPEL HILL, N.C.--(BUSINESS WIRE)--Feb. 19, 2002

The Brookstone Apartments, a 224-unit Class A- multifamily community in the northern section of Chapel Hill, N.C., has been purchased with $10.2 million in financing arranged by Holliday Fenoglio Fowler, L.P., the nation's leading commercial mortgage banking and investment sales firm.

Susan Hill, of Holliday Fenoglio Fowler's Houston office, arranged the seven-year, fixed-rate acquisition financing on behalf of JMG Brookstone Investors, LLC., through Nationwide Life Insurance Company.

Built in 1986, the Brookstone Apartments are located on 17.8 acres at 2701 Homestead Road, two miles north of downtown Chapel Hill and the University of North Carolina campus. The property is 86 percent leased.

As part of the Research Triangle area, the local economy is driven by a blend of technological, industrial, educational, medical and government-related businesses, creating a very stable economic base, said Hill.

"The local economy has grown by average of 3.1 percent over the past two years, and added 60,000 jobs, prompting a significant in-migration to the area," she said. "The population has grown 2.7 percent annually since 1991, a trend that is expected to continue at least through 2005. Rents within the Chapel Hill area increased 3.7 percent in 2000, and only 386 apartment units have been completed within the past 15 months."

Other than a 168-unit student housing project, no other multifamily permits have been issued for the Chapel Hill area, Hill added.

Holliday Fenoglio Fowler is the country's largest intermediary of capital for the commercial real estate industry. 2001 was a record-breaking year for the firm, with more than $12.2 billion in business volume. Since 1997, the national mortgage banking firm's debt, equity/structured finance and investment sales transactions have totaled more than $50 billion.