Hunt Mortgage Provides $20M+ in Loans

DALLAS—Commercial real estate lender Hunt Mortgage Group exclusively tells GlobeSt.com that it has recently provided more than $20 million in loans for two separate Dallas-Fort Worth area properties.

The company provided a $13 million bridge loan to finance the acquisition and rehabilitation of Brun Brae Apartments, located in Irving, and it has provided a conventional Freddie Mac loan in the amount of $8.6 million to refinance Midtown Arlington, student-housing property.

Burn Brae Apartments, located at 42 West Northgate Drive, is a 282-unit apartment community that was constructed in 1982, with 221,966 square feet of net rentable area situated on 11.83 acres. The property is a garden-style complex that is comprised of 13, two- and three-story residential buildings and three single-story, freestanding buildings that house the leasing office/clubhouse and two laundry facilities.

“The new owners plan to complete significant capital improvements that will serve to improve curb appeal and overall value of the property,” says Josh Messier, vice president at Hunt Mortgage Group. “Planned renovations include upgrading unit interiors, building exteriors and amenities, and a clubhouse overhaul.  Once the repositioning process is complete, the property will be rebranded as Sedona Park Apartments.”

The borrower is Northgate Investors LLC, a newly formed Wilmington, DE-based LLC that is owned by four key principals: Daniel Joseph, Hagan Brown, Keith Guerraz and Gary Fogg. 

After completion of the proposed renovation, a fitness center will be incorporated in the clubhouse, and a dog park, sport court and outdoor kitchen will be added.

A seven-year floating rate loan will be used to refinance Midtown Arlington apartments, a class A mid-rise comprised of 66 units and 218 beds, located across the street from the University of Texas at Arlington.

Midtown Arlington was built in 2011 and consists of four, four-story buildings situated on 3.44 acres of land. The borrower, DFW Midtown Arlington Associates LLC, acquired the property in July 2013.

“The borrower is a seasoned commercial real estate executive having owned and managed residential and commercial real estate assets worth in excess of $1.5 billion, including construction and renovation of more than 150 real estate projects,” says Yogesh Joshi, director at Hunt Mortgage Group.  “He has also been a multifamily owner/operator since 1984, and is a repeat Hunt and Freddie Mac borrower.  Hunt has closed four Freddie Mac CME loans totaling $52 million with the borrower over the past two years.”

Property amenities include a swimming pool, 24-hour fitness center, a clubhouse, business center, TV lounge, tanning salon, picnic/grilling area, billiards/game room, elevator access and covered parking.

The unit mix includes 12 two-bedroom, two-bathroom apartments, 22 three-bedroom, three-bathroom units, and 32 four-bedroom, four-bathroom apartments, totaling 95,256 square feet of net rentable area. Units feature amenities including large closets, appliances,  balconies, additional storage and washer/dryers.