Hunt Real Estate Capital provided a Fannie Mae conventional multifamily loan in the amount of $4.22 million to refinance a manufactured housing property located in Susanville, Calif.

The borrower is Hidden Acres MHP, a California limited partnership. The loan term is seven years and yield maintenance will apply during the first 6.5 years with a 1 percent prepayment fee thereafter with no fee due for the last 90 days.

Hidden Acres is manufactured housing community that is comprised of a clubhouse and maintenance building as well 101 manufactured housing units.  The site is situated on a 14-acre parcel of land.

“The borrower is a seasoned local manufactured housing investor with more than 40 years of experience in the commercial real estate industry,” said Steven Cox, senior managing director at Hunt Real Estate Capital. “He has extensive knowledge in management, investment, and development of a variety of assets and manages nearly all of his assets. He owns interest in nine manufactured housing communities located in California, Arizona, and Mississippi.”

Since the beginning of 2016, the borrower has spent just over $56,000 in capital improvements at the property, including plumbing upgrades, electrical work, painting, parking area, fencing and landscaping.

“The borrower is also a repeat Hunt Real Estate Capital client,” said Cox. “Earlier this year we financed Stadium Club, a 51-unit apartment complex in partnership. “We were pleased to provide this loan to a solid borrower on another deal to provide quality housing options for local families.”

Susanville is the county seat of Lassen County and is located around 85 miles north of Reno, Nevada. Project amenities include a clubhouse, billiards, horseshoes, and tether ball.

Gadsden Growth Properties Inc. has acquired Mission Hills Square, a mixed-use ground up development that includes 158 residential apartment units and 53,900 square feet of retail space for around $240 million in cash and stock.

Gadsden Growth Properties Inc., a privately-held real estate corporation which signed an agreement in November 2018 to merge with FC Global Realty Inc., whose stock trades over the counter.

“This acquisition is indicative of our core strategy of buying strong retail and mixed-use assets in secondary markets with robust economic and socioeconomic tailwinds,” said John E. Hartman, Chief Executive Officer of Gadsden Growth Properties Inc. “Fremont is a secondary city to both San Jose and San Francisco and is more affordable by Bay Area standards. We believe this asset significantly increases the company’s NAV and enhances the overall quality of our portfolio.”

Mission Hills Square is a new mixed-use development located in Fremont, Calif., and slated for completion in October 2019. Situated in the foothills of the San Francisco Bay Area along Highway 680, Mission Hills Square will offer 158 residential apartment units above 53,900 square feet of commercial retail space. Mission Hills future commercial tenants are anticipated to include retail stores, sit-down restaurants, and casual eateries that will serve not only the residents of Mission Hills but also the populations that live in the surrounding areas, as Mission Hills Square will be an easily accessible shopping and dining destination.

As a suburb of the San Francisco Bay Area, Mission Hills Square benefits from a high quality of life, and a well-educated work force boasting median incomes that exceed $100,000 within a five-mile radius. The project is in proximity to major employers, such as Facebook, Apple and other high-tech companies. In addition, demand for housing, coupled with low supply and high occupancy in the area, supports an inherent demand for both apartments and retail.

Hunt Real Estate Capital has provided a Fannie Mae conventional loan in the amount of $30 million to refinance a multifamily property located in Baton Rouge, Louisiana.

River House Apartments is a 224-unit, Class-A multifamily property located at 1480 Nicholson Dr. in the East Baton Rouge Parish. The property is comprised of 168 one-bedroom units and 56 two-bedroom units, housed in two, four-story mid-rise structures.

The loan features a 10-year term amortized over 30-years with two-years of interest only payments.

"River House Apartments was built in 2017, began to be lease in August of that year, and was 95% occupied by October 2018," said Marc Suarez, director at Hunt. "Proceeds from the loan will be utilized to pay off the existing construction loan and mezzanine facility."

"The borrowers on this deal are seasoned commercial real estate and multifamily investors who have acquired over 3.5 million square feet located in 18 states nationwide, have developed over one million square feet of new projects, and have managed over six million square feet across 23 states," said Suarez.

David Eyzenberg and Anastasia Vladislavova of Eyzenberg and Co. brought the deal to Hunt.

Property amenities include a courtyard with a pool and grill, a fitness center, and gated access. In addition, each unit has hardwood floors, a washer and dryer, and stainless- steel appliances.

The Baton Rouge economy is experiencing a stable, gradual recovery and core area employment has historically been tied to the petrochemical industries. Increasing economic diversification and recovery of oil prices and production have contributed to recent economic improvements.

Loan maturities this year will rise 8 percent from the $102.2 billion that matured in 2018.

Fully $110.5 billion of the $1.9 trillion (6 percent) of outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2019, according to the Commercial Real Estate-Multifamily Survey of Loan Maturity Volumes from the Mortgage Bankers Association.

“The upcoming roll of commercial and multifamily mortgage maturities is relatively stable, after seven years of instability,” said Jamie Woodwell, vice president for commercial real estate research of MBA. “Many commercial and multifamily mortgages have 10-year terms, and a decade ago, the Great Recession meant fewer new loans were being made. As a result, 2018 and 2019 loan maturity volumes have been smaller than would otherwise be the case. However, a sizable share of shorter-term loans financed in the last few years have made up the difference."

From 2020 to 2024, $130 billion to just more than $150-billion of non-bank-held mortgages will mature each year. Multifamily loans will make up a larger share of non-bank maturities, and government-sponsored enterprise loans will be a larger share of those.

According to this year’s survey, loan maturities vary significantly by investor group. Just $11.4 billion (2 percent) of the outstanding balance of multifamily and health care mortgages held or guaranteed by Fannie Mae, Freddie Mac, FHA and Ginnie Mae will mature this year. Life-insurance companies will see $15.8 billion (3 percent) of their outstanding mortgage balances mature, and among loans held in CMBS, $45.9 billion (9 percent) will come due in 2019. Among commercial mortgages held by credit companies and other investors, $37.3 billion (21 percent) will mature.

The dollar figures reported are the unpaid principle balances as of Dec. 31, 2018.  Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported in MBA’s survey.

The survey covers $1.89 trillion of commercial and multifamily mortgages held or insured by life companies, Fannie Mae, Freddie Mac, Federal Housing Administration, CMBS trusts and other non-bank lenders and investors. Banks and thrifts hold an additional $1.3 trillion in mortgages backed by income-producing properties, which are not covered by this survey.