Ohio Multifamily Asset Lands $33M Refi

The 15-year Freddie Mac loan for the 269-unit Water Street Residential property in Dayton was placed with Hunt Real Estate Capital.
Water Street Residential. Image courtesy of Hunt Real Estate Capital

Hunt Real Estate Capital has provided a $33.2 million, 15-year Freddie Mac multifamily loan to the owners of Water Street Residential, to refinance the newly-built 269-unit property in Dayton, Ohio.

“Water Street Residential was built in two phases in 2015 and 2018 and is in excellent physical condition,” Greg Cazel, managing director at Hunt Real Estate Capital, said in a prepared statement. “The second phase of the property leased up faster than expected and the property has quickly become a desired place to live.”

The ownership structure of Water Street Residential is comprised of two borrowers that are single-purpose, Ohio Limited Liability Cos. The borrower is Water Street Residential I, LLC, and the principal in charge of day-to-day operations is Herbert Chisling.

“The borrower has more than 40 years of real estate development, acquisition, disposition and management expertise,” Cazel said. “We were pleased to partner with this solid sponsor to refinance this quality property that will serve the residents and the community very well for years to come.”

The loan was originated by and the borrower was represented by MSF Real Estate Capital Inc., a mortgage banking firm. Senior Vice President Chad Kiner and Vice President A.J. Mangan led the team that placed the loan with Hunt Real Estate Capital.

The property at 427 Water St. has seven, multi-story residential buildings with elevators. It has 21 floorplans and a unit mix of 161 one-bedroom units, 93 two-bedroom units and 15 three-bedroom units. Amenities include:

  • clubhouse
  • movie theatre room
  • pool
  • business center
  • covered storage

Dayton has a low unemployment rate that has been trending downward since 2009. Wright-Patterson Air Force Base is located in Dayton, which has one of the highest concentrations of aerospace and high technology companies in the United States. The city is located about 50 miles northwest of Cincinnati, 65 miles southwest of Columbus, 135 miles south of Toledo and 75 miles southwest of Cleveland.

Hunt Recent Refi Deals

In March, Hunt secured an $8.8 million refinancing for Fay Street Apartments and Fort Colliers Apartments, properties with a total of 150 units in Winchester, Va. The properties are owned and self-managed by a local investor. The borrower received two 10-year Fannie Mae DUS loans – $4.6 million for Fay Street Apartments and $4.2 million for Fort Colliers Apartments.

A month earlier on the West Coast, Hunt originated a $4.2 million, seven-year Fannie Mae loan to refinance Hidden Acres, a manufactured housing property with 101 housing pads, a clubhouse and maintenance building in Susanville, Calif. The borrower was described as a seasoned local manufactured housing investor who had spent more than $56,000 on capital improvements since 2016 on the Hidden Acres property.