Dealmaker: Hunt Real Estate Capital Provides $31M

Hunt Real Estate Capital, New York, provided $30.7 million for office and apartment assets in Georgia and Arizona.

In Decatur, Ga., Hunt provided an $8.2 million first mortgage bridge loan for 755 Commerce Plaza, a 90,735-square-foot 10-story office building. The property was constructed on one-third acre in 1966 with some renovations completed in 2017 and 2018 including a lobby renovation and elevator upgrades.

“The loan will secure the acquisition of this asset and provide just over $600,000 so the new owner can implement capital improvement work on-site,” said Hunt Director James Kelly. “The borrower plans to complete all capital expenditure work within the first year of ownership and will work to lease-up to a stabilized occupancy.”

Located in DeKalb County, Decatur sits 6.5 miles east of Atlanta. The subject property is less than two blocks from the MARTA public transportation rail station and two blocks from the town square and county courthouse.

Hunt also provided $22.5 million in Agency loans to The Barone Group, San Diego, for two Arizona multifamily properties.

Churchill Capital Co. Co-Founder and President L. Duke Stone represented The Barone Group on both transactions. Bear Holdings Group LLC, Phoenix, provided acquisition, investment and asset management services.

“These properties are being acquired as part of a 1031 exchange from the sale of another property that Hunt Real Estate Capital financed for the borrower in 2016,” said Hunt Real Estate Capital Director Colin Cross. He noted the borrower had a tight closing timeframe due to the limited 1031 exchange window.

The subject properties included 224-unit Canyon Woods Apartments in Phoenix. The 1984-vintage property received a 12-year Freddie Mac loan facility with six years of interest-only payments.

Shadow Rose Apartments in Glendale received a 12-year Fannie Mae loan with nine years of interest-only payments. The transaction qualified for Fannie Mae’s Green Rewards loan program because the borrower will implement water-saving improvements to lower future utility expenses. In return, they locked an interest rate 83 basis points below standard Fannie Mae pricing at the time.

In addition to the green improvements, the borrower plans to implement a value-add capital improvements plan totaling $1.5 million to modernize unit interiors and common area amenities.