Dealmaker: Hunt Mortgage Group Provides $24M in Fannie Mae, Freddie Mac Funds

Hunt Mortgage Group, New York, provided a $19.2 million Fannie Mae loan for Mountain Brook Apartments, a Poughkeepsie, N.Y. multifamily property.

Borrower Mountain Brook Realty Holdings LLC received a 7/6 adjustable-rate mortgage with lockout for one year and 1 percent yield maintenance. After one year of interest-only payments the loan carries a 30-year amortization schedule.

“Mountain Brook Apartments is in good condition and is currently 92 percent occupied,” said Hunt Mortgage Group Managing Director Steven Cox. “Poughkeepsie has a strong need for multifamily housing.”

Hunt also provided a $5 million Freddie Mac Small Balance loan to refinance a Denver multifamily property. The property, 831 & 861 Cherry Street, is a 38-unit property built in 1948. The loan, a seven-year fixed plus 13-year hybrid ARM, carries a 30-year amortization period and a stepdown prepayment option.

“The sponsor is a new Freddie Mac and Hunt Mortgage Group borrower and has substantial experience in the real estate industry,” said Penny Newton, Vice President with Hunt’s Small Loan Group.

The borrower purchased the property in 2013 and executed a complete rehab and repositioning in 2014 and 2015. Freddie Mac provided substantial cash out for the reimbursement of their equity and some market appreciation, Newton said.

Newton noted that the property was vacated, rehabbed and re-tenanted and current occupancy exceeds 98 percent. “The property is located in Denver, considered to be a top market under the Freddie Mac Small Balance Loan program,” Newton said. “The real estate fundamentals with its central Denver location and experienced sponsor are very strong.”