Dealmaker: Hunt Mortgage Group Provides $41M for Multifamily Assets

November 7, 2017

Hunt Mortgage Group, New York, provided $41.2 million for five multifamily properties in South Carolina, Tennessee and Virginia.

In Columbia, S.C. Hunt provided $22.3 million in Fannie Mae funds for a three-property portfolio. Aline Capital LLC, Greenville, S.C., secured the financing The 625-unit portfolio includes Park Place Apartments, Copperfield Apartments and Hunter’s Ridge Apartments..

“Our financing will allow the borrower to invest in energy-efficient renovations and to improve the unit interiors,” Hunt Mortgage Group Vice President Keith Morris said. He noted the loan utilized Fannie Mae’s Green Rewards Program.

Hunt Mortgage Group also refinanced Highland Meadows, a 588-unit garden-style community in Memphis, Tenn., by providing a $10.4 million Fannie Mae conventional mortgage.

The borrower acquired the 1975-vintage property in 2012 with 52 percent occupancy. It has since completed nearly $3 million in renovations including exterior siding replacement, additional lighting, roof repairs, a new pool deck and pond repairs.

“The borrower entered into a PILOT Agreement with the Health, Educational and Housing Board of the City of Memphis that stands until 2022,” Morris said. “The property agreed to lease approximately 20 percent of the units to tenants that make 60 percent of area median income.”

Morris noted the borrower has increased occupancy to more than 90 percent since 2012. “This 10-year loan will help their business plan by providing over $1.1 million for additional renovations” he said.

In Williamsburg, Va., Hunt Mortgage Group provided an $8.5 million Fannie Mae loan for Stratford at Williamsburg, a 156-unit community developed in 1974. The 10-year loan included five years of interest-only payments.

“The previous owner made substantial capital improvements to the property, investing nearly $600,000, but occupancy is lagging so the new owners will concentrate on improving occupancy and rents,” Hunt Mortgage Group Managing Director Bryan Cullen said.