Hunt Mortgage Group has arranged an $8.7 million acquisition loan for Lee’s Landing in Newport News, Va. Geller Associates purchased the 136-unit community through a single-purpose LLC. The 12-year Fannie Mae loan bears five years of interest-only payments, a 30-year amortization period and a yield maintenance period of 11.5 years.
Lee’s Landing consists of two-bedroom/two-bathroom units only, 802 square feet in size. The property, constructed in 1987, comprises 22 buildings and a leasing office and clubhouse. Common amenities also include a playground, swimming pool and 220 parking spaces.
The community is located at 104 Republic Road, with immediate access to state Route 60 and Interstate 64, allowing commuters to travel to central Newport News to the south and Williamsburg and Richmond to the north. Two golf clubs are in the vicinity, while several retailers and restaurants can be found along Warwick Boulevard.
Seeking green rewards
The new owner plans to implement several upgrades to Lee’s Landing, to qualify for Fannie Mae’s green rewards program. To become eligible, the borrower must carry out capital improvements resulting in a 20 percent or more reduction to the whole property’s annual energy or water use. New ownership of Lee’s Landing has 12 months from the loan origination’s date to implement these features. They will include new low-flow toilets, new sink and shower aerators and LED lighting.
“The borrower is a repeat Hunt Mortgage Group and Fannie Mae sponsor, having most recently purchased the Trellis at Lee’s Mill multifamily property that is located just over two miles south of Lee’s Landing. We have financed nine multifamily apartment communities with this sponsor and they have a solid history of success,” said Steven Cox, managing director at Hunt Mortgage Group, in a prepared statement.
Image courtesy of Yardi Matrix