Dealmaker: Hunt Mortgage Group Provides $209M

Hunt Mortgage Group, New York, provided $208.5 million for multifamily properties in Texas, Florida, South Carolina, Michigan and Pennsylvania.

The firm provided $187 million to Atlantic Housing Foundation, Dallas, for its portfolio of affordable and student housing properties in Texas, Florida and South Carolina.

A team led by Hunt Senior Managing Director Paul Weissman secured loans including $102 million in variable-rate taxable financing from Freddie Mac, McLean, Va. and $83 million in fixed-rate tax-exempt financing enhanced through Fannie Mae’s Mortgage-Backed Security as Tax-Exempt Bond Collateral execution, which uses an MBS security as collateral for a tax-exempt bond issuance. The financing also included $2 million through a proprietary variable-rate execution supplied by Hunt.

The portfolio includes more than 3,500 units of affordable and student housing in 16 properties, many affordable to tenants at or below 60 percent of area median income where the properties are located. Weissman said Atlantic Housing Foundation plans to put more than $14 million back into the properties to make environmental efficiency and other improvements.

In Ann Arbor, Mich., Hunt provided a $16 million Fannie Mae Green Rewards loan secured by Woodchase Apartments, a 144-unit garden-style community at 1100 Rabbit Run Circle. The 11-building property is 98 percent occupied. The borrower, Woodchase Acquisition LLC, received a 15-year loan that amortizes on a 30-year schedule.

The deal sponsor is a partnership between Andover Real Estate Partners & M Group LLC that was formed in 2014 to acquire traditional multifamily communities around the country, said Hunt Managing Director Josh Messier. The partnership currently owns and operates properties in Michigan and Ohio approaching 850 units.

Messier noted the University of Michigan is a major economic driver in the Ann Arbor market, “but there is not a proliferation of students at this complex,” he said.

Matt Shane, Senior Managing Director with Q10 Lutz Financial Services, Birmingham, Mich., arranged the financing.

Hunt also provided a $5.5 million Freddie Mac Small Balance loan on Reach Lofts Apartments, a 30-unit affordable multifamily property in Philadelphia. The borrower was MM Equity Partners Philly LLC, a single-asset limited liability company managed by Elie Mamiye. The seven-year fixed-rate loan included two years of interest-only payments.

Reach Loft Apartments was built in 1900 and was originally a baseball-making factory, said Hunt Managing Director Harris Heller. The seller performed a gut renovation in 2015, repurposing the property into a multifamily property at a renovation cost of $3.6 million.

Heller said Reach Loft Apartments is in Philadelphia’s Fishtown neighborhood two miles north of the central business district. “The area has seen a renaissance in the past couple of years and the outlook for the neighborhood is positive,” he said.