Hunt Mortgage Provides $31M for Phoenix Property
- Feb 23, 2018
New York City-based Hunt Mortgage Group has provided a first mortgage bridge loan for $30.5 million to finance the acquisition and renovation of 240-unit Mountain Park Apartments in Phoenix. The garden-style community is in Ahwatukee Foothills, an urban village within the city of Phoenix and part of the East Valley district of the greater Phoenix area.
The apartments at Mountain Park Apartments measure 961 square feet on a weighted basis. The property’s list of amenities includes access to the six pools and the parks and recreational facilities of Mountain Park Ranch Home Owners Association. Next door to the apartment community are the playing fields and lighted sport courts of Sun Ray Park, as well as the South Mountain open space preserve. Also in near proximity are the upscale retail stores and restaurants of the Ahwatukee and Chandler areas.
The loan sponsor is Newport Beach, Calif.-based KB Development.
The company has built and developed more than 5,800 residential and multifamily residential units over the past four decades, as well as more than 7.3 million square feet of warehouse, distribution and office buildings.
“The large employers are right there, and more are coming,” said KB Development’s CEO Khosro Khaloghli. “The Ahwatukee Foothills multifamily submarket is perfectly positioned to exceed performance expectations, something I continually strive for.”
Same business model
Added Peter Clasquin, managing director at Hunt Mortgage Group, “Across their Phoenix portfolio, the sponsor has greatly improved property operations in a short period of time. This performance enabled us to protect Mountain Parks’ future cash flow based on the same improvements and business model. We are proud to partner again with KB Development on this high-quality transaction.”
This transaction represents KB Development’s fourth significant Phoenix-area multifamily acquisition in the last three years. The company has obtained $126.4 million in financing to acquire 1,232 units in the Phoenix market.