Hunt Real Estate Capital has recently provided a $64.1 million Fannie Mae affordable multifamily loan for the acquisition of a 216-unit community in San Pedro, Calif. SDG Housing Partners had acquired the property, Park Western Apartments, from a private owner for $62.9 million, equating to $337.03 per square foot.
The MBS as Tax-Exempt Bond Collateral (M.TEB) loan has a 17-year term and 40-year amortization, along with significantly greater loan proceeds to support a substantial rehab budget. Built in 1969, the property is located at 1327 West Park Western Drive and consists of 32 one-bedroom units, 24 four-bedroom units and a 1,300-square-foot maintenance shop.
The borrower is Park Western Housing LP, an entity backed by Richard Siebert and June Park of SDG Housing Partners, along with their nonprofit partner Affordable Housing Access. The new permanent financing and tax credit equity will enable SDG Housing Partners to preserve the affordable development that a statement by Hunt Real Estate Capital describes as “at-risk.”
The borrower plans a thorough renovation that will take 14 months, including work to the building exteriors and systems, upgrades to the apartments and common areas, and the addition of an exercise facility and community room. Current amenities include on-site management, a courtyard, central laundry facilities and garage parking.
The 14-building property in Los Angeles County is located within 1.6 miles of transit access and other facilities. Managing Directors Aaron Wooler and John McAlister of Hunt Real Estate Capital worked to place the financing.