Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today that it has provided a Fannie Mae small balance loan in the amount of $2.1 million to refinance a multifamily retirement property located in Lancaster, California.
Sierra Retirement Village is a 97-unit multifamily property located at 43321 Sierra Highway. Built in 1958, this low-rise property consists of six buildings, including four, two-story walk-ups, one, one-story apartment building, and one, one-story recreation building.
The borrower is 43321 Sierra Highway, L.P. The loan term is 7 years with 6.5 years yield maintenance, and a 30-year amortization schedule. Sierra Retirement Village offers all low-income units and caters to a 55 and older tenant base making the property attractive to seniors.
“Sierra Retirement Village is currently 96% occupied, and has maintained an average occupancy of 94% over the past 12 months,” noted Owen Breheny, Director at Hunt Mortgage Group and part of the firm’s dedicated small balance loan team. “The property is in good condition and is located in a mostly residential neighborhood. The borrower is an experienced multifamily investor that maintains an active role in overseeing both the management and maintenance of their properties.”
“When the borrower first approached me about refinancing this property, I had some reservations because he had a balloon note coming due with no extension options. He also needed to close within 40 days,” explained Doug Solether, Managing Director at Crefcoa, a commercial real estate finance company that partnered with Hunt Mortgage Group on the deal. “Having worked with Hunt Mortgage Group on countless loans, I knew they were the right partner that I could trust to deliver on this tight schedule.”
“The Hunt Mortgage Group underwriting team worked with us as one team and they operated in an efficient and timely manner,” added Solether. “While under significant stress given the hard deadline we faced, the borrower was more than pleased with the process and efficiency Hunt Mortgage Group and Crefcoa displayed.”
“We were delighted to deliver on this loan. This financing helped this experienced multifamily owner continue to deliver much need affordable housing to seniors in the local area,” concluded Breheny.
The property has a number of attractive amenities including: a clubhouse, recreation room, courtyard with a pool and Jacuzzi, and a laundry facility. Lancaster is located in the northern portion of Los Angeles County, approximately 70 miles north of downtown Los Angeles.