Atlanta Communities Score $24M Financing
- Jun 19, 2017
Hunt Mortgage Group has secured a $23.5 million first mortgage bridge loan to refinance The Marquis Brookhaven Portfolio that consists of two communities in Atlanta. The borrower will use the loan to refinance the 244-unit Terraces at Brookhaven and to purchase the 100-unit Northeast Plaza Apartments. The financing is structured as a 36-month floating rate loan with two one-year options to extend. Additionally, the loan is interest-only for the entire term.
“Proceeds from the new loan will refinance existing debt, facilitate the acquisition of one property, retire preferred equity, and is also inclusive of a $350,000 capital improvements reserve. Planned capital improvements include: interior unit renovations, upgraded amenities, installation of water savers and new signage,” RJ Guttroff, managing director at Hunt Mortgage Group, said in prepared remarks.
Terraces of Brookhaven
Located at 3510 Buford Highway N.E., the community built in 1968 consists of 22 buildings including 21 two- and three-story apartment buildings and one two-story clubhouse and leasing office. The property was 91 percent occupied at the time of the deal. Community amenities include a swimming pool, a playground and a laundry facility.
Northeast Plaza Apartments
Built in 1966, the community is located at 3506 Buford Highway N.E. and is comprised of 13 two-story residential buildings. Amenities include two swimming pools, a playground, a laundry facility and 150 parking stalls. The unit mix consists of one-, two- and three-bedroom floorplans ranging in size from 732 to 1,271 square feet. At the time of the deal, the property was at 99 percent occupancy as of April, according to Yardi Matrix.
“Both properties are well located in an area in need of additional housing supply. We were pleased to deliver this bridge loan to a quality borrower. We believe Atlanta continues to be a strong performer in commercial real estate and the local housing market is vastly undersupplied,” Guttroff, managing director at Hunt Mortgage Group, said in prepared remarks.
Images courtesy of Yardi Matrix, Management by Star Residential