Multifamily Portfolio Wins $35M in Refinancing

Williamsburg Village Apartments in Gainesville, Fla.

by Dees Stribling

New York City—Hunt Mortgage Group has obtained loans to refinance a portfolio of five multifamily properties located in the Southeast for a single borrower. The total loan amount is $35.6 million, and each loan will carry its own mortgage.

The deal includes a seven-year term with three years of interest-only payments; a one-year prepay lockout followed by a 1 percent prepayment; and 30-year amortization. “The borrower on this portfolio is a seasoned commercial real estate investor known for adding value to the properties they’ve acquired,” said Steven Cox, managing director at Hunt Mortgage Group.

Borrowing for multifamily deals continues to be brisk. According to the Mortgage Bankers Association, the $27.6 billion increase in multifamily mortgage debt outstanding between the first and second quarters of 2016 represented a 2.6 percent increase. In dollar terms, agency and government-sponsored enterprise portfolios and mortgage-backed securities saw the largest increase in their holdings of multifamily mortgage debt, at 2.9 percent.

The five properties involved in the Hunt Mortgage refi include:

* Williamsburg Village Apartments (pictured). The 128-unit Gainesville, Fla., property comprises 11 three-story apartment buildings and a one-story leasing office/clubhouse. The $5.5 million loan refinanced the asset, which has a student tenant base of 97 percent and is near the University of Florida in Gainesville. Common amenities include a swimming pool, sun deck and laundry facility.

* Hunters Pointe Apartments. The $10 million loan refinanced the 394-unit multifamily property in Charlotte comprising 62 one- and two-story buildings and a single-story clubhouse, a maintenance building, a mail kiosk and two pool equipment buildings. All of the two-story residential buildings have townhome-style units, with the remaining buildings situated in garden or loft-style fashion.

* Mt. Vernon Apartments. Located in Gainesville, Fla., the garden-style multifamily asset was refinanced with a $4.1 million Fannie Mae loan. The property consists of nine three-story buildings with a total of 102 units and one single-story leasing office building. The University of Florida in Gainesville is less than a mile away, and the apartments have a student concentration of 97 percent.

* Biscayne Apartment Homes. The garden-style multifamily property in Atlanta consists of 24 two-story residential buildings, plus a single-story leasing office building and a single-story laundry building. It has a total of 370 units. Common amenities include a swimming pool, laundry facilities and a volleyball court. The property was refinanced with a $7.9 million loan.

* Eastwyck Village Townhouses. Funds in the amount of $8.1 million went to refinance the Atlanta garden-style multifamily property. It is 91 percent occupied and includes 80 two- and three-story residential buildings, plus a single-story leasing office with a maintenance shop and a mail kiosk. The property has a total of 436 units.