Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it provided a $15 million Fannie Mae loan facility to refinance a bridge loan on a multifamily property located in Dallas, Texas.
Magnolia Creek Apartments (formerly Surrey Row Apartments) is comprised of 28 three-story residential buildings, plus one single-story leasing office building on 14.4 acres of land. Located at 7272 Marvin D. Love Freeway, the property houses 436 units and was built in 1988. The Apartments have five available floor plans, including an efficiency unit, one-bedroom, two-bedroom and three-bedroom units. Parking is furnished via 644 spaces. Amenities include: laundry facility, a leasing office with lounge and fitness center, swimming pool and two playgrounds.
Hunt Mortgage Group provided the bridge financing to enable the acquisition and rehabilitation of the property for the borrower in early 2015. The borrower is sponsored by Iliad Realty Group who was represented by Sal Torre of Estreich & Company out of New York. The new loan terms include an 84-month term (7/6 ARM), and 30-year amortization period.
“Iliad is new to Fannie Mae, but is a repeat Hunt Mortgage Group client, as we provided the bridge loan needed to secure this property,” said Bryan Cullen, Managing Director with Hunt Mortgage Group. “They are seasoned commercial real estate and multifamily investors, with a solid track record in successful turnarounds of apartment deals.”
Commenting on the deal, Torre said, “We worked with Hunt Mortgage Group on the bridge loan and the Sponsor was pleased with the service and execution so we were comfortable continuing our relationship with the permanent. We closed as scheduled with the terms in the application.”
“Prior to acquisition, the previous owner invested $1.3 million in capital improvements. The borrower added to this $1.1 million of capital funds to make additional repairs, including landscaping, security upgrades, foundation repairs, other exterior repairs, and the repainting and renovation of 60 units,” added Cullen. “Property performance has improved under the new ownership with occupancy growing from 80% to 90%. We were pleased to place this loan for a quality return client.”
The property is managed by Walker Holder Residential, Inc., a local professional management company that also managed recent property renovations.