Dealmaker: Hunt Mortgage Group Refinances Two Multifamily Properties

Hunt Mortgage Group, New York, provided $15 million in Fannie Mae funds to refinance multifamily properties in Missouri and South Carolina.

Hunt Managing Director Steven Cox secured an $11 million Fannie Mae loan to refinance The Villages at Lake Silvercote, a newly developed property in Wentzville, Mo. The loan terms included a seven-year term with one-year interest-only followed by a 30-year amortization period.

Cox said Villages at Lake Silvercote was structured in three phases–development for Phase I started in 2014 and was recently completed. Phase II is currently under construction, with the lease-up process is underway.

The 105-unit property lies within the St. Louis Metropolitan market and the St. Charles County submarket, Cox said. “Demand for multifamily is high in this strong submarket,” he said. “Wentzville is expecting a population boom and the newly constructed Phase I leased very well.”

Hunt also provided a $4 million Fannie Mae loan to refinance a Greenville, S.C., multifamily property, Lakewood on Saluda. The garden-style 104-unit property was built in 1974 and includes 52 one-story residential duplex units.

The borrower, Victoria Apartments Inc., received a Tier 2++ 7-6 Fannie Mae adjustable-rate mortgage with a seven-year loan term, one-year lockout period with one percent pre-payment premium thereafter and a 30-year amortization schedule.

“The borrower was looking for a flexible financing alternative while reducing interest rate risk,” said Hunt Mortgage Group Vice President Josh Messier. “The Fannie Mae 7-6 ARM product was perfectly aligned with the sponsor’s business plan.”

Messier said Victoria Apartments purchased Lakewood on Saluda in May 2014 and has invested heavily in capital improvements including HVAC replacements, interior upgrades, installation of new windows and landscaping. He noted multifamily demand remains high in the Greenville-Anderson-Mauldin metro.