Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it provided a first mortgage bridge loan to finance the acquisition and renovation of two multifamily properties located in Dallas, Texas. The loan was provided to the same sponsor and totaled $21.5 million.
The borrower is Iliad Realty Group, backed by key principal Elliott Aronson. The loan was structured with an initial funding of $18,245,000 and future fundings that total $3,241,000. The loan is a 24-month floating rate loan with three one-year options to extend the loan term. The properties include:
- North Park Terrace. North Park Terrace is a 309-unit garden-style multifamily complex located at 8662 Park Lane. The property was built in 1973 and is comprised of 41 buildings including 35 apartment buildings, a clubhouse/leasing office, two laundry buildings, a maintenance building, a boiler room and a pool building. The unit mix features 54 studio units, 131 one-bedroom apartments, and 124 two-bedroom units. North Park is 76% occupied. Property amenities include a swimming pool, two laundry facilities, a dog park, a clubroom, a conference room, a pool table, a sauna and two picnic areas.
- Pecan Tree Apartments. Located at 3001 Kendale Drive, Pecan Tree Apartments is a 174-unit garden-style multifamily complex. Built in 1970, the property is comprised of six, two-story apartment buildings. Property amenities include an on-site rental office and laundry facilities. The unit mix features 12 one-bedroom efficiency units, 158 one-bedroom units, and four two-bedroom apartments. The property is 95% occupied.
The borrower is planning an extensive $3.24 million capital improvements plan. At Pecan Tree Apartments, the plan is to renovate 117 units and implement exterior improvements including the parking lot, stairwells, roof, concrete, fencing, drainage, paint, signage, and other items. At North Park Terrace, approximately 134 units will be renovated including all the down and vacant units plus additional 50 units that are currently occupied. The exterior improvement plans for North Park are the same as for Pecan, with larger dollar amounts being allocated to the roof, mold remediation, and drainage. The remaining units at both properties are in good condition or have received partial upgrades over the years.
“We received the application on December 5th and closed it on the last day of the year,” noted Bryan Cullen, Managing Director with Hunt Mortgage Group. “This involved a full commitment from our Proprietary Loan Group (PLG), and required a sophisticated borrower team that included Sal Torre of Estreich and Company.”
“Elliott Aronson of Iliad Realty is a repeat Hunt Mortgage Group client. In early 2015, we provided a 10.5 million bridge loan for the acquisition and renovation of Surrey Row Apartments, a 436-unit multifamily property located in Dallas,” added Cullen. “This deal included an extensive renovation budget of $1.18 million. Elliott successfully completed the renovation and refinanced the bridge loan in July 2016 through Hunt Mortgage Group. The property was rebranded to Magnolia Creek and the loan is currently performing well.”
Mr. Torre added, “We came back to Hunt Mortgage Group after recent success on another Dallas transaction that Iliad purchased with a Hunt bridge and recently refinanced with a Fannie Mae permanent. We are anticipating a similar success on these two properties.”
Iliad Realty has acquired and successfully repositioned 22 apartment communities totaling over 6,500 units in Texas. The Sponsor specializes in value-add acquisitions of properties of similar vintage to the subject.
“We were pleased to partner again with this solid repeat investor and support his efforts to reposition two Dallas multifamily properties,” concluded Cullen.”