Hunt Mortgage Group Finances 19-Property So-Cal Portfolio
- May 24, 2016
Los Angeles—Hunt Mortgage Group has closed on a $31.6 million multifamily portfolio deal, placing 19 individual Freddie Mac Small Balance loans on 19 properties located throughout the Los Angeles area.
The undisclosed borrower has more than 30 years of experience in owning and managing multifamily units in the Los Angeles area and currently own more than 2,600 units.
“The portfolio had strong sponsorship, was located in a robust market, and the individual properties were fully stabilized with high occupancy rates,” Mark Besharaty, Hunt Mortgage Group’s director, small loan group, told MHN. “The sponsors had owned and managed the properties in the portfolio for many years and had significant experience with multifamily properties within the specific submarket locations.”
The facilities are all small balance multifamily properties, containing anywhere from eight to 47 units, and loan amounts ranged in size from $750,000 to $4.1 million.
According to Besharaty, the deal was a complex transaction with one main sponsor but multiple ownership entities and partners. The rate was negotiated and priced below offerings from local and national lending institutions and all the loans were non-recourse transactions with one-year of interest only payments.
The properties are located in a variety of neighborhoods spanning the City of Los Angeles, including the Hollywood submarket, Wilshire/Westlake submarket, Panorama City and Van Nuys.
“The portfolio is located in one of the top MSA’s in the country with strong market metrics including employment, occupancy, and property valuation,” Besharaty said. “The location of Hunt’s regional Irvine office provided substantial benefits for financing this specific portfolio transaction. Key members of the team were physically present for initial negotiations, property inspections, and the collection of voluminous due diligence materials.”
Hunt Mortgage Group is a market leader in commercial real estate lending servicing a loan portfolio of $11 billion.
“The company has built a solid partnership with Freddie Mac and Fannie Mae for multifamily conventional and small balance lending,” Besharaty said. “This transaction was a perfect fit for Hunt’s Freddie Mac Small Balance Loan program as the borrowers required non-recourse financing with an Interest Only option and highly competitive rates. Hunt was able to utilize resources across the entire SBL platform to deliver financing given the elaborate ownership structures on 19 individual assets.”
The deals were brokered by Todd Orlando, senior loan officer and Mike Miller, commercial lending specialist at Wintrust Mortgage.