Hunt Real Estate Capital has provided three Freddie Mac Small Balance Loans totaling $11.1 million. To complete the transactions, Hunt provided two cash-out refinances, which provided liquidity for the acquisition of a third property.

The loans have a five-year fixed-rate term, with no interest only period, amortized over 30-years. All three properties are fully occupied, and they are as follows:

• Springtree Apartments received a $6.7 million loan to acquire Springtree Apartments in Lakewood, Wash. The complex is comprised of 13 buildings and the unit mix includes 14 one-bedroom, one-bathroom units and 89 two-bedroom, one-bathroom apartments. The sellers recently completed a property renovation. There are 41 surface parking spots at the property, and project amenities includes common laundry, a sport court, playground, barbecue/picnic area, and on-site manager.
• Southcrest Apartments received a loan in the amount of $1.7 million to refinance the Lakewood, Wash-based property. Built in 1970, the property consists of five, two-story apartment buildings. The unit mix is 35 one-bedroom, one-bathroom units, and one two-bedroom, one-bathroom apartment. There are also 46 surface parking spots at the property. Units have been updated when turned over during the past three years, with the owner investing $119,520 in improvements since acquisition.
• Colonial Village Apartments received a $2.7 million loan to refinance the property that’s based in Tacoma, Wash. The property was built in 1961 and the borrowers have maintained the property replacing, repairing and upgrading as needed. They have invested $160,640 in the property since acquisition. The property has 25 one-bedroom, one-bathroom units, and 16 two-bedroom, one-bathroom apartments.

"The borrowers have solid experience in the local rental market with a proven track record for success," noted Chris Warren, director at Hunt Real Estate Capital. "They purchased their first multifamily complex in 1988 and have steadily expanded their portfolio since. The borrowers have successfully owned and operated multifamily properties in the greater Seattle area for over 31 years. "

Kennedy Wilson has sold the Bay Village Apartments in the San Francisco suburb of Vallejo, Calif. The firm owned a 50% ownership in the 260-unit property that was acquired in 2010.

“This sale enables us to recycle capital into other strategic investment opportunities that we plan to close this month,” said Kurt Zech, president of the multifamily division at Kennedy Wilson. “We are proud of the value-add program we implemented at this well-located property that has benefited from its proximity to job centers and schools, as well as the continued strong demand for attainable rental housing in the North Bay.”

[caption id="attachment_8046" align="alignleft" width="150"] Kennedy has sold its interest in a San Francisco apartment complex.[/caption]

Located at 1107 Porter Street, Bay Village Apartments are situated on a waterfront bluff two miles from downtown Vallejo. The collection of one- and two-bedroom apartment homes across 41 two-story buildings on 18.5 acres was originally built in 1988 and has undergone significant improvements, including exterior renovations and unit upgrades under Kennedy Wilson’s ownership. The clubhouse was also completely remodeled, including an expanded fitness center for residents.

Kennedy Wilson maintains a large presence in Northern California with an ownership interest in over 800,000 commercial square feet and approximately 2,900 multifamily units.

Freddie Mac and Boston Financial Investment Management have completed an affordable housing investment. The $5.5 million low-income housing tax credit fund equity investment is for the rehabilitation of Riverwood Village Apartments, a Section 8 family property in Russellville, Ark. The complex consists of 72 units within eight, two-story walk-ups originally built in 1976.

“The preservation and rehabilitation of Riverwood Village will have a tremendous positive impact on the families that live there as well as the surrounding community of Russellville,” said Sarah Laubinger, executive vice president of Boston Financial. “We look forward to working together to further our shared mission of bringing safe, quality and affordable housing to communities across the country.”

The investment was made through a LIHTC that Freddie has closed with Boston Financial, the third closing since re-entering the market in September. The $100 million fund  is the first managed by Boston Financial. The LIHTC program finances affordable rental housing in the U.S.

The fund will focus on transactions in areas that have been underserved over the past decade, such as rural communities, four percent LIHTC financing and developments that provide intensive supportive services  for their residents.

Among planned improvements to the apartment are exterior and interior renovations, including energy efficient windows, HVAC system upgrades, energy efficient lighting, new flooring, and kitchen and bathroom replacements. Several community amenities will be upgraded or added as well, including a new playground, community rooms, a fitness center, a business center, and library and laundry rooms. Six of the units will be made handicap accessible.

“The first investment through the fund will provide for a full renovation of Riverwood Village,” said David Leopold, vice president of targeted affordable sales and investments at Freddie Mac. “The 72 affordable housing units were built more than 40 years ago and are in serious need of rehabilitation.”