NEW YORK, Sept. 16, 2020 /PRNewswire/ -- Hunt Real Estate Capital, a division of ORIX Real Estate Capital, has provided a $43 million Fannie Mae DUS® Conventional Multifamily loan to refinance Ironclad Apartments, a 172-unit mid-rise apartment community in Minneapolis, Minnesota that debuted in 2019.
The loan refinances construction debt from a bank the borrower utilized to build Ironclad and a neighboring hotel starting in 2017.
"We were proud to partner with the sponsor, as well as Rohit Narayanan at Lighthouse Advisors, to complete this Fannie Mae refinance," said Nicholas Diamond, vice president at Hunt. "This was the sponsor's first agency deal and first multifamily project in over two decades, and we were humbled to be selected as their partner in this undertaking. With the new structure in place, Ironclad is well-positioned to reap the benefits of agency financing for years to come."
In February of this year, the transaction was originally expected to proceed as a Fannie Mae Multifamily Near-Stabilization execution. In the wake of the COVID-19 crisis and subsequent market disruption, Fannie suspended the program, yet was able to work with Hunt to quickly pivot to the conventional option.
The $43 million loan features a low, fixed interest rate and 10-year term with three years of interest only followed by a 30-year amortization schedule. In addition to paying off construction debt with low-cost capital at a fixed interest rate, the closing provides for substantial cash-out proceeds to the sponsors of approximately $2.1 million.
Ironclad Apartments is a "class A" property with high-quality amenities, as well as two commercial units. Due to the high-quality nature of the asset and its prime location, Ironclad was able to successfully lease up and stabilize during the summer months despite challenges caused by the pandemic.
About Hunt Real Estate Capital
Hunt Real Estate Capital (HREC), a division of ORIX Real Estate Capital, is a leader in financing multifamily housing and commercial real estate. HREC is a source of debt for multifamily, affordable housing, manufactured housing, healthcare/senior living, retail, office, industrial, self-storage, and mixed-use assets through Fannie Mae, Freddie Mac, FHA, its own balance sheet and managed public and private investment vehicles. To learn more, visit www.huntrealestatecapital.com.
Hunt Real Estate Capital
SOURCE Hunt Real Estate Capital