Hunt Mortgage Group has provided two Freddie Mac Small Balance Loans totaling $7.5 million for the refinancing of two Seattle-area communities, totaling 86 units. Glenn Gioseffi, first vice president & partner at Kidder Mathews, sourced the loans.
Cedar Gardens Apartments, located at 2110 SW 337th Place in Federal Way, Wash., landed a $5.1 Hybrid-ARM loan with a 30-year amortization schedule. Built in 1980, the property offers 49 units across five, two-story buildings.
Local real estate owner/operator Robert LaFountaine was the borrower. Since 2015, he invested roughly $300,000 in the property’s capital improvements. The upgrades included new interior painting, improvements to the roofs, new carpets/vinyl tile, cabinets, counter tops and appliances.
The 37-unit Birch Crest Apartments, situated at 4030 S. 140th St. in Tukwila, Wash., received a 10/1 Hybrid Arm loan with a 30-year amortization, along with a yield maintenance prepayment option. The community dates back to 1964 and includes 25 one-bedroom and 12 two-bedroom apartments, across a two-story building.
James and Mimi Lee, two local commercial real estate and multifamily investors, own the property. The loan serves for the refinancing of the existing first mortgage and will yield cash-out proceeds of roughly $812,000, to be further invested in other real estate ventures.
Highly desirable market
“Both Cedar Gardens and Birch Crest are located in the Seattle MSA, a highly-desirable market that consistently supports demand for multifamily housing, and the population in the area is projected to continue to grow,” said Sergey Klimov, vice president at Hunt Mortgage Group, in prepared remarks. “The borrowers on both loans are seasoned local commercial real estate investors with track records of success.”
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