Dealmaker: Hunt Real Estate Capital Provides $54M in Fannie Mae Refinance Funds
Hunt Real Estate Capital, New York, provided a $43 million Fannie Mae loan to refinance Ironclad Apartments, a 172-unit mid-rise apartment community that delivered in Minneapolis last year.
The loan refinances construction debt from a bank the borrower used to build Ironclad and a neighboring hotel starting in 2017.
Hunt Vice President Nicholas Diamond said the firm partnered with Lighthouse Commercial Real Estate Advisors, New York, to complete the refinancing. “This was the sponsor’s first agency deal and first multifamily project in over two decades,” he said.
The transaction was originally expected to proceed as a Fannie Mae Multifamily Near-Stabilization execution. But Fannie Mae suspended that program due to COVID-19 market disruption, so Hunt pivoted to the agency’s Delegated Underwriting and Servicing conventional multifamily option.
The 10-year fixed-rate loan included three years of interest-only payments followed by a 30-year amortization schedule. In addition to paying off construction debt it provided more than $2 million in cash-out proceeds to the sponsors.
In August Hunt provided an $11 million Fannie Mae DUS loan to refinance Buckner Village Apartments, a 172-unit property in Dallas with 24 two-story apartment buildings. Churchill Capital Co. President and Co-Founder Duke Stone served as the mortgage banker for the transaction.
Built in 1972, Buckner Village Apartments is a garden-style workforce housing community that is 98 percent occupied. The 12-year fixed-rate loan included two years of interest-only payments and a 30-year amortization schedule.
