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Aug. 5, 2014

TODAY’S DEALS: Hunt Mortgage Group Refinances Two Houston Assets

Houston—Hunt Mortgage Group (formerly Centerline) has provided $12.5 million in Fannie Mae financing to refinance two multifamily properties located in Houston. The group is a subsidiary of Hunt Companies. The borrower is a Texas limited partnership.

Proceeds from the loan will be used for a rate and term refinance of existing FNMA DUS loans that have been in the Hunt (formerly Centerline Capital Group) portfolio since 1998. The properties include:

  • Hammerly Villa Apartments—Hunt provided a $4 million loan facility for this property that was constructed in 1972. The 174-unit property located in western Houston. After its acquisition in 2000, the owners made extensive improvements to the exteriors and interiors of the units, totaling approximately $850,000, or $4,885 per unit
  • Eagle Hollow Apartments—Hunt provided an $8.5 million loan to refinance Eagle Hollow Apartments, a 350-unit multifamily property located on an irregular-shaped parcel of land containing 10 acres.

“The new loans will lower the debt service payments and we timed the closings to avoid any prepayment penalties,” says Bryan Cullen, managing director with Hunt Mortgage Group. “Eagle Hollow’s debt service will drop by $130,000/year and Hammerly’s by $44,000/year.”

Walker & Dunlop structures $56M HUD financing for Louisiana portfolio

Baton Rouge, La. & New Orleans—Walker & Dunlop Inc. has arranged financing for one multifamily property in Baton Rouge and five healthcare properties spread out between Baton Rouge, New Orleans and Springhill, La.

Michael Vaugh, senior vice president, and Kevin Giusti, vice president, led the team that structured the refinance loans using HUD’s 223 (f) and 232-223(f) programs.

“Thanks to our team’s expertise with HUD products and knowledge of the healthcare industry and local market, we were able to refinance the existing HUD and conventional loans on the properties and structure fixed-rate long-term financing and reduce the borrower’s debt service significantly,” Vaughn says.

Meridian Capital arranges $31.6M financing with cash-out, reduces prepay penalty

New York—Meridian Capital Group LLC negotiated a $31.6 million loan to refinance a nine-property multifamily portfolio located throughout Manhattan, the Bronx and Long Island, N.Y.

The five-year loan, provided by a regional balance sheet lender, features a competitive fixed-rate of 3.25 percent and two years of interest-only payments followed by a 30-year amortization schedule. The transaction was negotiated by Meridian Capital Group Vice President David Zlotnick, who is based in the company’s New York City headquarters.

The nine-property multifamily portfolio totals 456 units and includes assets located on Academy Street in Manhattan; Gerard Avenue, Creston Avenue, Tryon Avenue, East 180th Street, Wythe Place and Valentine Avenue in the Bronx; and Fulton Avenue in Hempstead, NY.

“Meridian leveraged our unique relationship with existing lender to reduce the prepayment penalty and allow the borrower to cash out approximately $4.5 million,” says Zlotnick. “We provided the borrower with favorable financing, including two years of interest-only payments, that will enhance cash flow over this period.”

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