Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it provided a Freddie Mac Small Balance Loan in the amount of $5.2 million to finance the acquisition of an affordable multifamily property located in Whittier, California.
Located at 11500 Colima Road, Candlewood Apartments is a 43-unit residential property comprised of three, two-story residential buildings and a one-story building at the front which provides gated access to the property. The property offers 63 parking spaces.
“The new loan will be used to pay off the existing lender and will yield cash-out proceeds to perform minor deferred maintenance, reinvest in additional on-site capital improvements, and for acquisition of other income producing assets,” noted Mark Besharaty, Director at Hunt Mortgage Group.
The transaction is a five-year hybrid, with a 20-year term and 30-year amortization. The first five years the loan will be fixed-rate and the remaining 15 years it will have a floating rate. The borrower is The Highlander Group, LP, a California formed limited partnership, backed by William and Shelly Suh.
Whittier is a submarket of the Los Angeles MSA, and is situated approximately 18 miles from the Los Angeles central business district. Los Angeles is considered to be a Freddie Mac Top Market.
Currently twelve units are occupied by tenants with Section 8 Vouchers, which is typical within the immediate submarket.
“The borrower is an experienced multifamily investor that has successfully owned and operated the property since acquisition in October 2014,” added Besharaty. “We were pleased to provide this loan to help them improve this property and continue to provide quality affordable housing to the local community.”