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Earlier this month, just months after completion, River Oaks District changed hands in a $550M cash sale. Now HFF has arranged JV equity for the recapitalization of the 650k SF luxury mixed-use development. HFF's team, led by Trey Morsbach and Bill Fishel, worked on behalf of developer OliverMcMillan and its equity partner to arrange recapitalization from its investor, JP Morgan Asset Management.
So much financial movement around such a hot property is not cause for concern. While HFF was tight-lipped about specifics, it's likely that recapitalization was a way to restructure constructions loans into long-term loans. Since there was no permanent loan on the building, OliverMcMillan likely used the $550M cash proceeds to retire the construction loan and maintain a small equity stake.
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