By D.C. Stribling, Contributing Editor
Hunt Mortgage Group arranged a $10.4 million Fannie Mae conventional mortgage to refinance Highland Meadows, a 588-unit, garden-style apartment building in Memphis. The community, which was originally developed in 1975, is at 5045 Airways Blvd. adjacent to Memphis International Airport.
The owner, New York-based Highland Meadows Partners LLC, acquired the property in 2012 for $5.5 million, when Highland Meadows was 52 percent occupied, and then completed more than $2.9 million of renovations. The work included exterior siding replacement, additional lighting, roof repairs, a new pool deck, pond repairs, sidewalk and fence repairs, a new video/security monitoring system and the installation of an automatic entry gate.
The borrower thus increased occupancy to more than 90 percent in the last five years. Moreover, the renovation work isn’t over yet. According to the company’s plan, the 10-year loan will provide more than $1.1 million for additional upgrades.
Hunt Mortgage is a subsidiary of Hunt Cos. and specializes in residential and commercial lending, with a current servicing portfolio of $13.4 billion.
“The borrower entered into a PILOT Agreement with the Health, Educational and Housing Board of the city of Memphis that stands until 2022,” explained Keith Morris, vice president in the Atlanta office of Hunt Mortgage Group. “The property agreed to lease about 20 percent of the units to tenants that make 60 percent of area median income.”