Two Freddie Mac Small Balance Loans Total $7.4 million
NEW YORK, April 18, 2018 – Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it provided two Freddie Mac Small Balance Loans in the amount of $7.5 million to refinance two multifamily properties located in the Seattle, Washington area.
The loans were sourced by Glenn Gioseffi at Kidder Mathews and the properties include:
Cedar Gardens Apartments. Cedar Gardens Apartments is a 49-unit multifamily property located at 2110 SW 337th Place in Federal Way, Washington. The property was built in 1980 and is comprised of five, two-story buildings. Hunt Mortgage Group provided a $5.1 million loan to refinance this property. The borrower is Robert LaFountaine, a local real estate owner/operator who has been investing in real estate for over 40 years, and currently owns and manages over 400 residential units in the Seattle area across 11 different properties.
The transaction is structured as a five-year Hybrid-ARM loan with a 30-year amortization schedule. The property is 98% occupied. Since 2015, the borrower has invested roughly $300,000 in capital improvements in Cedar Gardens Apartments, including new carpets/vinyl tile, new cabinets, interior painting, counter tops, blinds and new appliances, as well as improvements to the roofs and exterior painting.
Birch Crest Apartments. Hunt Mortgage Group provided a loan in the amount of $2.2 million to refinance Birch Crest Apartments, a 37-unit, two-story one building apartment complex located at 4030 South 140th Street in Tukwila, Washington. The property was built in 1964 and contains 25 one-bedroom and 12-two bedroom apartment units. The units are being upgraded as tenants vacate their lease and the building has newer siding, doors, roof, and windows. Property amenities include a common laundry room.
The new loan will refinance the existing first mortgage and will yield cash-out proceeds of approximately $812,000 that will be used to invest in additional real estate ventures by the sponsor. The transaction is a 10/1 Hybrid Arm loan with a 30-year amortization, and a yield maintenance prepayment option. The borrowers are James and Mimi Lee, two local and experienced commercial real estate and multifamily investors. The Lee’s have over 31 years of multifamily experience and currently own nine multifamily residential complexes totaling 318 units.
“Both Cedar Gardens and Birch Crest are located in the Seattle MSA, a highly-desirable market that consistently supports demand for multifamily housing, and the population in the area is projected to continue to grow,” noted Sergey Klimov, Vice President at Hunt Mortgage Group. “The borrowers on both loans are seasoned local commercial real estate investors with track records of success. We were pleased to provide the loans to refinance these properties.” Both transactions were sourced by Glenn Gioseffi, Vice President at Kidder Mathews a local debt and equity group specializes in the placement of commercial mortgages.
About Hunt Mortgage Group
Hunt Mortgage Group, a wholly owned subsidiary of Hunt Companies, Inc., is a leader in financing commercial real estate throughout the United States. The Company finances all types of commercial real estate: multifamily properties (including small balance), affordable housing, office, retail, manufactured housing, healthcare/senior living, industrial, and self-storage facilities. It offers Fannie Mae, Freddie Mac, HUD/FHA in addition to its own Proprietary loan products. Since inception, the Company has structured more than $21 billion of loans and today maintains a servicing portfolio of more than $13.4 billion. Headquartered in New York City, Hunt Mortgage Group has 232 professionals in 25 locations throughout the United States. To learn more, visit www.huntmortgagegroup.com.