NEW YORK, May 21, 2019 /PRNewswire/ -- Hunt Real Estate Capital, a leader in financing commercial real estate throughout the United States, announced today it provided a Freddie Mac loan in the amount of $28.3 million to refinance a multifamily property located in Houston, Texas.
The loan is a seven-year, variable rate loan with three-years of interest-only negotiated with the Freddie Mac Affordable Housing Team. The borrower is sponsored by Iliad Realty Group with whom Hunt Real Estate Capital has worked on numerous previous transactions.
Heights at Post Oak is a 940-unit multifamily property that consists of 94 two-story apartment buildings. Built in 1972, the property is a walk up-style apartment complex situated on 39.46 acres of land. All of the units are affordable to low-income tenants with income levels equal to or less than 60 percent of Area Median Income (AMI), and 268 of the units are affordable to very low-income tenants with incomes less than or equal to 30 percent of AMI.
"The borrower acquired Heights at Post Oak in November of 2016 through foreclosure and has invested $5.4 million in property upgrades since purchase," commented Bryan Cullen, Senior Managing Director at Hunt Real Estate Capital. "The subject was unleveraged, and proceeds from the new loan will be used to return equity to the sponsors and complete the finishing touches on the renovation program."
Capital improvements completed by the sponsor to date include hundreds of upgraded unit interiors, new appliances, boiler and HVAC replacement, exterior carpentry repairs and the repair of units inherited from prior ownership.
Additional planned improvements over the next 12 months include the upgrading of all remaining vacant units, as well as the completion of a brand new leasing office, fitness center and community facility.
"Since acquisition and the substantial renovation, Heights at Post Oak has steadily increased occupancy and rents, and the adjustable rate loan will allow prepayment flexibility next year to compliment the anticipated increased value," added Cullen.
The loan was arranged by Sal Torre of Estreich & Company. "We took application at $27,000,000 at 60% of value but were able to support an increase of $1.3 million in the loan amount due to the strong lease up of the renovated units and an increase in the appraised value," he added.
Heights at Post Oak offers one-, two-, and three-bedroom options. Property amenities include gated access, two playgrounds, and eight laundry facilities.
The property is located within the Fondren/Westbury submarket approximately 12 miles southwest of the Houston Central Business District. Land uses within the neighborhood include residential and commercial developments. The local population is forecast to demonstrate strong growth in the coming years.
About Hunt Real Estate Capital
Hunt Real Estate Capital, part of Hunt Companies, Inc., is a leader in financing commercial real estate throughout the United States. The Company finances all types of commercial real estate: multifamily properties (including small balance), affordable housing, office, retail, manufactured housing, healthcare/senior living, industrial, and self-storage facilities. It offers Fannie Mae, Freddie Mac, FHA financing and its own Proprietary loan products. Since inception, the Company has structured more than $28.4 billion of loans and today maintains a servicing portfolio of more than $15 billion. Headquartered in New York City, Hunt Real Estate Capital has 255 professionals in 24 locations throughout the United States. To learn more, visit https://huntrealestatecapital.com/.
Hunt Real Estate Capital
SOURCE Hunt Real Estate Capital