Hunt Pressing Into Micro Multifamily Loans

MIAMI—Commercial real estate lender Hunt Mortgage Group is especially active on the Florida multifamily front this quarter. The company just inked loans for four multifamily assets in the Sunshine State.

"All four of these properties are in good condition, backed by seasoned sponsors, and are located in cities that are performing very well," Bill Papagno, director at Hunt, tells GlobeSt.com. The deals, which include financing for Morningside Bay Apartments, Villas at Pembroke Pines, Parkview Apartments, and Country Club 25 Apartments, beef up Hunt's Florida Small Balance portfolio. The firm takes on some interesting deals in the state.

Hunt provided a $1.3 million Fannie Mae loan to refinance Morningside. Located at 5995 Biscayne Boulevard in Miami, Morningside Bay Apartments is a 24-unit multifamily property that was built in 1974 and has nine section 8 tenants.

Morningside will use the proceeds from the loan to pay off the first lien with the remaining balance to be paid to the borrower. The loan term is 10-years with 9.5-years yield maintenance, and a 30-year amortization schedule. The multifamily property is currently 100% occupied and has maintained an average of 99% occupancy over the past 12 months.

Hunt provided a Freddie Mac loan of $2.6 million to facilitate the acquisition of the 40-unit Villas at Pembroke Pines, which is located at 6601 and 6661 Southwest 18th Street in Tampa, FL, The transaction is a 5+15 Hybrid ARM deal with a 30-year amortization and step-down prepayment schedule. There will be one-year of interest only, after which the loan will amortize on a 30-year basis. Villas of Pembroke Pines is a garden-style multifamily complex built in 1973 and situated on a 1.13-acre parcel of land.

Hunt provided a $3.7 million Freddie Mac loan to finance the acquisition of Parkview Apartments, a 100-unit multifamily property located in Tampa, FL. The multifamily transaction is a seven-year fixed rate deal with 30-year amortization and step-down prepayment schedule. The property sits on  5.23 acres of land and has a net rentable area of 104,400 square feet.  

Hunt provided a $1.4 million Freddie Mac loan to fund the acquisition of Country Club 25 Apartments,  a 13-unit multifamily property located in Coral Springs, FL. The transaction is a Hybrid ARM 5+15 with 30-year amortization and step-down prepayment schedule. The loan will amortize on a 30-year basis.

Hunt opened its Fort Lauderdale office and hired Papagno to lead the local effort in May 2015. The firm previously opened a Miami office in 2014.  "This was done in direct response to strong market dynamics," Rick Warren, senior managing director at Hunt, tells GlobeSt.com. "We knew a local presence would enable us to better serve the unique needs of developers and owners in the Southeast. Bill is making great progress in growing our local footprint in the region."