Hunt Mortgage Secures $17M for 3 CA Properties
- May 29, 2018
Hunt Mortgage Group has facilitated two Freddie Mac Small Balance Loans and a Fannie Mae Conventional Green mortgage to refinance a three-property multifamily portfolio in Bakersfield, Calif. The loans, all to private borrowers, total about $17 million.
The properties include the 200-unit Village Lane Apartments at 5101 Marsha St., which received a Freddie Mac Small Balance Loan of $6 million. The property consists of 33 one- and two-story buildings with 79 one-bedroom units, 120 two-bedroom apartments and one three-bedroom unit.
The borrower has owned the property since 1979 and in 2017 invested $60,000 in solar panels. Common amenities include two laundry rooms and a pool.
River Oaks Apartments, a 46-unit multifamily property at 336 Roberts Lane and 314 & 400 Locust Street, received a Freddie Mac Small Balance Loan of $1.86 million. The borrower has already purchased $60,000 in solar panels that will be installed after the loan closes.
The property includes 15 one- and two-story buildings consisting of all two-bedroom units. Common amenities include a central laundry room with two washers and two dryers.
Park Villa Apartments, which received a Fannie Mae Conventional Green mortgage of $9 million, is a 224-unit apartment community. The loan will be executed as a Green Rewards Mortgage Loan with the borrower completing energy-saving improvements to the property after the loan closes.
Park Villa Apartments was built in 1973 and has 371 parking spaces. Between 2014 and 2016, the borrower spent more than $250,000 on capital improvements, including repaving the asphalt, new carpets and flooring, roof tune-ups, and new water heaters. Common amenities include two outdoor and one indoor swimming pools, clubhouse, business center, fitness center, tennis court, laundry rooms and a barbecue/picnic area.
Loans Are for Local Owners
The structure of the two Freddie Mac loans is a 10-year fixed-rate loan, with no interest only and a 30-year amortization schedule, according to Hunt Mortgage. The conventional mortgage has a 12 year with a 30-year amortization term.
“The borrowers are experienced commercial real estate owners that reside in Bakersfield and have about 40 years of experience in multifamily real estate,” noted Chris Warren, vice president at Hunt Mortgage.
“These sponsors currently own and operate five apartment projects in California with a total of 475 units,” Warren added. “They have owned investment properties over the past 30 years in the area, strongly rooting them to the community.”