Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it provided a Fannie Mae loan in the amount of $11.5 million to refinance a recent acquisition of a multifamily property located in Mebane, North Carolina.
Alexander Pointe Apartments is a 120-unit garden style apartment complex consisting of five, three-story residential structures. Mebane, North Carolina is located northwest of Durham, and is in close proximity to the Tanger Shopping Outlets. The property was built in 2016 and the units average over 1,100 square feet (https://www.alexanderpointeapartments.com/).
The borrower is Sovereign Development Company, LLC, 100% owned by Jim Kitchen, who purchased the property in lease up for $14.8 million with the help of an $11.5 million loan with The Bank of North Carolina. Mr. Kitchen has been investing in all forms of real estate in and around North Carolina since 1992.
Kathy Anderson placed the bridge loan and negotiated for the permanent loan with Hunt Mortgage Group.
Mr. Kitchen said “when we acquired the property we had to rectify some tenant and marketing issues related to the previous owner. Our fee manager, Apartment Dynamics, helped us to move the occupancy from 70% in the summer to nearly fully occupied in October with no concessions.”
Mr. Kitchen continued, “Hunt was able increase our loan dollars by over $50,000 after rate lock by identifying savings in the insurance premium. Overall, they did a wonderful job, and delivered as promised.”
“Our loan was debt service constrained at just under 80% of Mr. Kitchen’s acquisition cost but ended up being 70% of the fully stabilized appraisal amount,” noted Bryan Cullen, Managing Director with Hunt Mortgage Group.
Common area amenities include a community pool, business center, fitness center, putting green, dog park, and a clubhouse. Unit amenities include wood cabinets with granite countertops and plank flooring in the kitchens, wood cabinet with granite counter and built-in porcelain sink, vanity mirror, and ceramic tile flooring in the bathrooms, washer/dryers and private patio or balcony in each unit.