Hunt Real Estate Provides $61M in Georgia Loans
- Jan 16, 2020
Hunt Real Estate Capital has provided a total of $61.1 million in loans for the acquisition of three multifamily properties totaling 682 units in Georgia. Steven Cox, senior managing director of the commercial real estate lender, closed on all three deals. The communities, two of which were acquired by the same investor, are located across the state, from the outskirts of Atlanta to the border with Florida.
Built from 1983 to 1995, the properties changed hands for a total of $75.5 million and include:
- Ashford Walk (306 units) at 3480 Morningside Village Lane in Doraville
- Estates at Barrington (176 units) at 301 Barrington Hall Drive in Macon
- Park Place Apartments (200 units) at 11919 Colerain Road in St. Mary’s
“The tremendous growth in the Atlanta market has led to opportunities in surrounding markets,” Cox noted to Multi-Housing News. “Buyers chasing yield and lower property values have been pushing out into secondary and tertiary markets where they can acquire property and upgrade units far below construction costs.”
MSC Investment and Management, a commercial real estate investment firm that specializes in the acquisition and repositioning of multifamily properties, bought Ashford Walk from RADCO Cos. for $39 million, according to Yardi Matrix. Hunt Real Estate Capital provided a $32.5 million first mortgage bridge loan for the purchase and renovation of the property, located about 12 miles northeast of Atlanta.
The loan has a two-year term, with three one-year extension options. Built in 1983, the property is 93 percent occupied across 65 two-story residential buildings and a one-story clubhouse. The unit mix consists of one-, two- and three-bedroom apartments with vaulted ceilings, extra storage and a patio or balcony. Select units have washer/dryer connections and fireplaces.
Amenities include a swimming pool, fitness center, laundry facilities and a newly renovated clubhouse and leasing center, as well as a new playground and dog park. The borrower plans to launch rebrand the community and launch a $2 million interior upgrade plan, while improving the property’s street appeal.
In August of last year, Vista Realty Partners sold the affordable Longwood Vista community in Doraville to Fairfield Residential as part of a two-property, $70 million deal.
Sharp Management adds two assets
Hunt Real Estate Capital also provided a $12.8 million Fannie Mae DUS conventional multifamily loan for the acquisition of Estates at Barrington, which is located roughly 80 miles southeast of Atlanta in the city of Macon. Property management firm Sharp Management acquired the asset from Wilkinson Real Estate Advisors for $16.7 million, according to Yardi Matrix.
The 15-year loan features seven years of interest-only payments followed by a 30-year amortization for the remainder of the loan term. Built in 1995, the property offers 192,000 rentable square feet across a mix of one-, two- and three-bedroom units. Amenities range from a covered car care center to a tennis court and fitness center. Minimal repairs are needed as the property was well-maintained by the previous owner.
Sharp Management also acquired Park Place Apartments in St. Mary’s, a city in Georgia’s Camden County just north of the Florida border, for $19.8 million. Hunt Real Estate Capital provided a $15.8 million loan for the acquisition. The loan has a 12-year term with five years of interest-only payments followed by a 30-year amortization for the loan term’s remainder.
Built in 1987, the community is considered part of the Jacksonville, Fla., metropolitan area and spans 11 two- and three-story apartment buildings on a 14.2-acre site. Amenities include a fitness center, laundry facility, 350 parking spaces and 24-hour emergency maintenance.
“As the population grows in cities like Atlanta, Charlotte, Charleston, Miami, and Orlando, the markets on the outskirts of these metropolitan areas will continue to see rental growth, as well as rehabilitation of existing rental apartment stock,” Cox added.