Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it provided a conventional Fannie Mae loan in the amount of $28.4 million to finance the acquisition of a multifamily property located in Reading, Pennsylvania.
Reed Farm Apartments is a 242-unit garden style apartment complex consisting of 35, two-story residential structures, including a farm house that was built pre-1930 and converted into an apartment unit in 2003. The property was built in two phases between 2003 and 2005.
Loan terms include a 12-year term with a 30-year amortization period, and an 11.5-year yield maintenance period. The sponsor is based in Reading, Pennsylvania and purchased the subject as part of a 1031 exchange a month before Hunt Mortgage Group closed the loan.
“This is the first Fannie Mae financing for the Sponsor who has to this point relied on bank financing in accumulating a large and successful regional portfolio, “noted Bryan Cullen, Managing Director with Hunt Mortgage Group.
The sponsor was represented by James Conley of HFF in Philadelphia.
The sponsor’s real estate portfolio consists of 2,000 multifamily units in a total of 15 multifamily properties. His portfolio includes one condo property, four commercial properties, three single family residences, and 28 properties planned or under development.
“We used the 12-year term and the Green Rewards program to lower the interest rate and maximize the financing.” added Cullen. “Green improvements that are planned include installation of low-flow kitchen faucets, low-flow bath faucets, low-flow showerheads, and low-flush toilets in many of the units. These improvement should drop the water bill by 20% and lowered their interest rate by 30 basis points.”
Reed Farm Apartments is situated within a residential and commercial area in Reading, with a mix of multifamily, single-family and retail properties near-by. The Reading Metropolitan Statistical Area is situated within Berks County, Pennsylvania, an area that is experiencing steady population growth. At the same time, the Reading private sector is creating jobs at a rapid pace, specifically in the healthcare, manufacturing, and business/professional services industries.