LOS ANGELES—Hunt Mortgage Group has closed on 19 Freddie Mac Small Balance loans for a 19-property multifamily portfolio in Southern California. The loan amount totaled $31.6 million and each individual loan ranged in size from $750,000 to $1 million. This was an incredibly complex transaction with a single sponsor and multiple ownership entities. Mark Besharaty, a director in the Small Loan Group at Hunt Mortgage Group, says this is the first time he has seen a transaction like this in his nearly 30-year career.
“This deal really fit the parameters of the Freddie Mac program. We are one of the top lenders for this program, and when we saw this as a really good fit. Our office in Southern California is also right new to the Freddie Mac office, so we were able to talk about the transaction and we were able to go out and see the properties physically very easily,” Besharaty, tells GlobeSt.com. “They felt that these properties were a great fit for the program, and because we are a great sell-servicer, that we were a great fit to spearhead this portfolio for Freddie Mac. So, we were able to work a very great partnership on this transaction together.” The 19 properties in the portfolio range in size from eight to 47 units, and are located in the Hollywood submarket, Wilshire/Westlake submarket, Panorama City and Van Nuys.
Besharaty says that there was plenty of competition for the deal, and that the borrower had taken it to market to get the best pricing. “We were able to stay competitive on pricing and with non-recourse terms, which was what the sponsor wanted,” says Besharaty. The rate was priced below offerings from national and local institutions. All of the loans were non-recourse and had one-year of interest-only payments.
Although there was a single sponsor, the deal became incredibly complex with the different ownership structures, which included family trusts. Each deal ranged in closing time while Hunt collaborated with each ownership structure, and in some cases, waited for existing financing to expire before they could close the loans. Besharaty says that the process for most of the loans took 60 to 90 days, although there were some exceptions, and that working with such a complicated structure required tremendous communication. As a result, it took a team effort to close the transaction, and the team at Hunt Mortgage was integral in getting the deal completed.
Todd Orlando, senior loan officer and Mike Miller, commercial lending specialist at Wintrust Mortgage brokered the deal on behalf of the borrower.
LOS ANGELES—Hunt Mortgage Group has closed on 19
“This deal really fit the parameters of the
Besharaty says that there was plenty of competition for the deal, and that the borrower had taken it to market to get the best pricing. “We were able to stay competitive on pricing and with non-recourse terms, which was what the sponsor wanted,” says Besharaty. The rate was priced below offerings from national and local institutions. All of the loans were non-recourse and had one-year of interest-only payments.
Although there was a single sponsor, the deal became incredibly complex with the different ownership structures, which included family trusts. Each deal ranged in closing time while Hunt collaborated with each ownership structure, and in some cases, waited for existing financing to expire before they could close the loans. Besharaty says that the process for most of the loans took 60 to 90 days, although there were some exceptions, and that working with such a complicated structure required tremendous communication. As a result, it took a team effort to close the transaction, and the team at Hunt Mortgage was integral in getting the deal completed.
Todd Orlando, senior loan officer and
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