Hunt Mortgage Group Finances Texas, Idaho Multifamily Properties
Hunt Mortgage Group, New York, financed $20.8 million for two Texas and Idaho multifamily properties.
In Houston, Texas, Hunt provided $11.6 million in Fannie Mae funds for Oaks of Ashford Apartments, a 255-unit garden-style property.
The borrowers, all newly formed LLCs managed by Principal La Familia Property Management LLC, acquired the property from LAB OAKS/The Lynd Co., which purchased the property in 2013 by five Tenants-In-Common.
“The Tenants-In-Common arrangement enables the sponsors to preserve the tax benefits of the 1031 exchange,” said Hunt Mortgage Group Vice President Chris Warren.
Warren noted that the seller invested $750,000 between 2013 and 2016 to renovate the property, including repairing damaged siding and replacing the water heaters in most units.
Oaks of Ashford Apartments is in Houston’s Briar Forest/Ashford submarket. “The property is a 20-minute drive from Houston’s central business district in a growing area of northwest Houston,” Warren said. “All of the principals live in California and the Oaks of Ashford Apartments will be their first investment in Texas. However, they are experienced investors and the property will continue to be managed by The Lynd Co., which has successfully managed it since 2013.”
In Eagle, Idaho, Hunt provided a $9.2 million five-year Freddie Mac loan on Eagle River Apartments, an 80-unit garden-style community built in 2015. Business Loan Store President Terry Painter sourced the loan.
“The borrower will be using funds from a deferred exchange for a portion of the purchase price of the property,” said Hunt Mortgage Group Vice President Sergey Klimov. “The remaining balance of the funds will come from a Reverse 1031 Exchange, where the borrower will sell another property in the next 180 days to facilitate the reverse exchange. This is a rather unusual deal structure.”
Eagle River Apartments lies within the Eagle submarket 15 miles northwest from Boise’s central business district. The immediate area surrounding the property is a newer area with mostly residential units built after 1989.
