Hunt Real Estate Capital provided agency loans of around $22.5 million to finance the acquisition of two multifamily properties located in Arizona.
The Barone Group and strategic partners backed both deals. Duke Stone at Churchill Capital Company represented the owners on transactions. Acquisition, investment and asset management services were provided by Bear Holdings Group LLC.
"These properties are being acquired as part of a 1031-exchange from the sale of another property that Hunt Real Estate Capital financed for the borrower in 2016," noted Colin Cross, Director at Hunt Real Estate Capital. "The borrower had a tight timeframe to close the acquisitions and allocate their 1031 funds, so we were thrilled Fannie Mae and Freddie Mac” could provide financing options during a very volatile period in the debt markets."
The properties are as follows:
- Canyon Woods Apartments:The property was built in 1984 and features 224 apartment units and is located in Phoenix. The community is situated on approximately seven acres and consists of 12, two-story buildings. It is well maintained and features a quiet, family-friendly environment. Hunt Freddie Mac loan facility featuring a 12-year term with six years of interest only. Upon acquisition, the borrower plans to implement a $2 million capital improvements plan to complete interior and exterior upgrades to improve property operations and better compete within the local market.
- Shadow Rose Apartments: The property was built in 1985 and features 148 apartment units. The community is situated on approximately 5.86 acres of land, and consists of 14, two-story buildings in Glendale, Ariz. It is in great physical condition and provides workforce housing for the local community. Hunt provided a Fannie Mae loan facility featuring a 12-year term with nine years of interest only. The transaction qualified for Fannie Mae's Green Rewards loan program where the borrower will implement water-saving improvements to lower future utility expenses. in return, they locked an interest rate that was 83 basis points below standard pricing. In addition, the borrower plans to implement a capital improvements plan of over $1.5 million to modernize interiors and common area amenities.
