Hunt Provides $28M Acquisition Loan for PA Asset

By Tudor Scolca

View of entryway to Reed Farms Apartments at 200 Elmer Circle

Hunt Mortgage Group has provided $28.4 million in financing for the acquisition of Reed Farm Apartments, a 242-unit community in Reading, Penn. The Fannie Mae loan has a 12-year term with a 30-year amortization period and a 11.5-year yield maintenance period. The property had been previously acquired as part of a 1031 exchange.

Reed Farm is located at 200 Elmer Circle. It features one-, two- and three-bedroom units, ranging in size from 852 to 1124 square feet. The property totals 35 two-story buildings, developed in 2003 and 2005, as well as a pre-1930s farm house, which was transformed into an apartment unit. Common amenities include a clubhouse, swimming pool, tennis courts and a playground.

The neighborhood features multiple other apartment communities. Residents of Reed Farm can shop and dine at Fairgrounds Square Shopping Mall, located about three miles away. A Walmart Supercenter is also nearby, along Allentown Pike. Routes 222 and 61 are close, providing access to downtown Reading. The regional airport is about six miles from the community.

Green improvements

The owner plans to lower maintenance costs with various eco-friendly improvements. The loan arranged by Hunt Mortgage fit the criteria for Fannie Mae’s Green Rewards program.

“We used the 12-year term and the Green Rewards program to lower the interest rate and maximize the financing. Green improvements that are planned include installation of low-flow kitchen faucets, low-flow bath faucets, low-flow showerheads, and low-flush toilets in many of the units. These improvements should drop the water bill by 20 percent and lowered their interest rate by 30 basis points,” said Bryan Cullen, managing director with Hunt Mortgage Group, in a prepared statement.

Image via Google Street View