Dealmaker: Hunt Mortgage Group Provides $27M For Multifamily

Michael Tucker mtucker@mba.org

June 05, 2018


Hunt Mortgage Group, New York, provided $26.6 million for multifamily assets in Bakersfield, Calif. and Toledo, Ohio.

In Bakersfield the firm wrote two Freddie Mac Small Balance Loans and a Fannie Mae Conventional Green mortgage to refinance a three-property multifamily portfolio. The firm's investment totaled $17 million. The properties included Village Lane Apartments, River Oaks Apartments and Park Villa Apartments.

Village Lane Apartments received a $6 million Freddie Mac refinance loan. With the Village Lane Apartments refinancing, the borrower received $300,000 in cash-out proceeds to further renovate the subject property with green improvements. The borrower has owned the property since 1979 and invested $60,000 in solar panels last year.

River Oaks Apartments received a $1.86 million Freddie Mac Small Balance Loan. The borrower cashed out $150,000 at closing to renovate and make green improvements on site.

Park Villa Apartments received a $9 million Fannie Mae Conventional Green mortgage. The property at 1405 White Lane includes 48 one-story residential buildings that date to 1973. The borrower spent more than $250,000 on capital improvements between 2014 and 2016 including repaving the parkin lot, new carpets and flooring, roof repairs ups and new water heaters. The borrower plans to complete energy-saving improvements to the property post-close.

"The borrowers are experienced commercial real estate owners that reside in Bakersfield and have approximately 40 years of experience in multifamily real estate," said Hunt Mortgage Group Vice President Chris Warren. "These sponsors currently own and operate five apartment properties in California with a total of 475 units."

The two Freddie Mac loans are 10-year fixed-rate financings with 30-year amortization schedules and the conventional mortgage has a 12-year term with a 30-year amortization schedule.

Hunt also provided a $9.67 million Freddie Mac loan secured by Jamestown of Toledo Apartments, a 204-unit a property. Constructed in 1965, the property currently has nearly one-third student renters due to its location near the University of Toledo Medical College and a community college.

The borrower was Jamestown Apartments 17 LLC, a single-purpose entity owned by Watermark Partners Fund IV LLC, Ypsilanti, Mich. 

"The property is being considered a long-term hold for the borrower as stable growth and returns are forecasted over a long-term investment horizon," said Hunt Mortgage Group Managing Director Josh Messier. He noted the former owner recently invested more than $230,000 in capital expenditures including roof replacements, HVAC unit replacements, kitchen upgrades and the replacement of many balcony railings and patio fencing.

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