Hunt Real Estate Secures $23M for Phoenix-Area 1031 Exchange
The 224-unit Canyon Woods and the 148-unit Shadow Rose are both slated for upgrades, with ownership set to invest roughly $3.5 million in improvements.
After securing a $6.1 million acquisition loan for a Class B community in Baltimore, Hunt Real Estate Capital has closed on $22.5 million in financing for the acquisition of two Arizona assets. The properties are: Canyon Woods Apartments, a 224-unit community in Phoenix, and Shadow Rose Apartments, a 148-unit property in Glendale, Ariz.
Located at 2524 W. Glenrosa Ave. on approximately 7 acres, Canyon Woods consists of 12 two-story buildings. Constructed in 1984, the property features one- and two-bedroom units averaging 642 square feet. Common-area amenities include two swimming pools, two spas, two laundry facilities, a picnic/playground area and 180 parking spaces.
Freddie Mac provided a 12-year loan for Canyon Woods. The borrower plans to invest roughly $2 million in capital improvements, which will include interior and exterior upgrades.
Built in 1985, Shadow Rose encompasses 14 two-story buildings at 6231 N. 37th Ave., on approximately 5.9 acres. The community includes a swimming pool, a spa, laundry facilities and a clubhouse.
Fannie Mae provided the 12-year, nine-year interest-only loan. The borrower plans to invest $1.5 million to improve unit interiors and common-area amenities.
“These properties are being acquired as part of a 1031 exchange from the sale of another property that Hunt Real Estate Capital financed for the borrower in 2016,” Colin Cross, director at Hunt Real Estate Capital, said in a prepared statement. “The borrower had a tight timeframe to close the acquisitions and allocate their 1031 funds, so we were thrilled that our partners at Fannie Mae and Freddie Mac stepped up to provide best-in-class financing options during a very volatile period in the debt markets.”
Image courtesy of Yardi Matrix