Hudson Realty Capital Secures Utah Refi

Bloomington Apartments, LLC, with key principals Darcy Stewart and Grant Marsh, has refinanced Bloomington Apartments, a 118-unit community in St. George, Utah. Hudson Realty Capital, a New York-based commercial real estate investment manager and national FHA/HUD lender, secured the loan $24.6 million FHA Section 223(f) loan with a 5.56 percent interest rate.

HUD’s 223(f) program is a good option for borrowers seeking a product that offers benefits in an uncertain market. Hudson Realty Capital officials noted in prepared remarks that they were able to secure a competitive rate and flexible terms to offer the owners of Bloomington Apartments a financing solution that supports their long-term investment goals and helps ensure continued success of the property.

Located at 3061 S. Bloomington Dr., Bloomington Apartments was completed in 2023. The property consists of four residential buildings with one- and two-bedroom apartments ranging from 773 to 1,095 square feet.

Apartment features include kitchen islands, granite countertops, stainless steel appliances, in-unit washers/dryers, walk-in closets, luxury vinyl plank flooring and private balconies or patios. Rents range from $1,349 to $1,850.

Community amenities include a pool, hot tub, grilling pavilion and picnic area, tennis court, fitness center, pet washing station and assigned parking.

The Bloomington Apartments refinancing deal reflects the strong fundamentals of the Utah multifamily market, characterized by high demand, low vacancy rates and steady rental growth. Hudson Realty Capital noted that St. George has become a destination for residents and investors due to its strong job market, outdoor recreation opportunities and high quality of life.

The community is located near multiple local golf courses, Bloomington Park, Tonaquint Park and White Dome Nature preserve.

Rockworth Management, part of the Rockworth Cos., is the property manager for Bloomington Apartments. The Holladay, Utah,-based company provides management to more than 2,500 units in Utah, New Mexico, Nevada, South Dakota, Texas, Colorado, Idaho and Wyoming.

Loan program launched

In November, Hudson Realty Capital launched an $800 million bridge-to-HUD loan program for market-rate, affordable and senior housing multifamily projects with targeted loan sizes between $15 million to $50 million. The program targets middle-market transactions for acquiring, constructing, stabilizing and rehabilitating multifamily investments. It’s tailored to owners seeking permanent FHA/HUD financing but first needing to stabilize property operations.

The firm has issued more than $380 million in term sheets and is reviewing another $350 million in loan applications for the bridge program. Early in the program, Hudson Realty Capital issued $153 million in term sheets for the acquisition of a 330-unit property in Colorado Springs, Colo., the purchase of a 300-unit property in Denver and the refinancing of a 200-unit asset in Philadelphia.

Since its inception in 2003, Hudson Realty Capital has managed investments totaling more than $4.5 billion in transaction value across the multifamily, mixed-use, office, retail, industrial and hospitality sectors. The fully integrated commercial real estate lender and its team focus on debt origination, distressed debt analysis and work-out, due diligence, securitization, asset management, loan servicing and disposition.