Hunt Finances Three in Texas

HOUSTON--Hunt Mortgage Group has provided Freddie Mac Small Balance loans to refinance three multifamily properties located in Texas. The total investment by Hunt Mortgage Group is $9.4 million, GlobeSt.com has exclusively learned.

Under the new program launched last year, Hunt Mortgage Group provides small loans between $1-5 million to borrowers nationwide. Hunt is one of a select few lenders chosen by Freddie Mac to offer the agency's new Small Business Lending product.

The properties include: Vassar Place Apartments and Carlisle Apartments in Houston, and Cedar Springs Townhomes in Dallas.

“All three of these properties are in good condition, backed by seasoned sponsors, and are located in cities that are currently performing well,” says Charlie Cole, regional director for the Small Loan Group at Hunt Mortgage Group.  “We were pleased to close on these three loans and to continue to build our Freddie Mac Small Balance portfolio.  There are only a small number of SBL lenders for the Freddie product nationwide and we are pleased to be one of the most successful.”

Vassar Place consists of 22 units contained in three, two-story buildings situated on 0.48 acres of land. The transaction carries a 10-year fixed-rate loan with 30-years of amortization and a step-down prepayment schedule and 36-months of interest only. The borrower is Vassar Place Associates LLC, a Texas limited liability company formed in February 2000.

Vassar has had exceptionally high occupancy in the last year and has been outperforming the market. The borrower invested approximately $300,000 in capital improvements at Vassar Place Apartments over the past three years. This includes unit upgrades consisting of wood and ceramic tile flooring in the living and bedroom areas; wooden cabinets, granite countertops, ceramic tile flooring, stainless steel appliances in the kitchen; and ceramic tile floors, vanities, tiled showers in the bathrooms. Exterior improvements include exterior paint, roof, parking, HVAC, landscaping and pool work.

Carlisle Apartments is a 124-unit multifamily property contained in 10, two-story buildings situated on 5.01 acres of land. Hunt Mortgage Group financed the acquisition and the transaction is a 10-year fixed-rate loan with 30 years amortization and a step-down prepayment schedule. The transaction will include 36 months of interest only. The borrower is RMC Real Estate LLC, a Texas limited liability company.

Cedar Springs Townhomes are a 15-unit multifamily property. The loan term is10-year fixed-rate with 30-years amortization and a step-down prepayment schedule. The transaction will also include 36 months of interest-only. The borrower is 4920 Cedar Springs LLC, a Texas limited liability company. The property is comprised of three, three-story buildings situated on 0.6 acres of land. Property amenities include a swimming pool and barbecue area. 

The borrower purchased two lots in April 2013, began constructing the subject in June 2013, and completed construction in February 2015. Cedar Springs Townhomes is currently 100 percent occupied and is in excellent condition. All of the units have two-bedrooms and two-and-a-half bathrooms ranging in size from 1,700 to 1,800 square feet for a total net rentable area of 26,250 square feet.  

Property amenities consist of a swimming pool, storage units, and laundry room.  The previous owner invested $260,000 in capital expenditures over the past three years including new appliances, granite countertops, laminate wood flooring, exterior paint, fencing, roofs, boiler, and landscaping.