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 $65 million to finance the acquisition of a multifamily property in Houston, Texas.
Located at 8750 Point Park Drive, Villages of Copperfield is comprised of 58 two- and three-story residential buildings, plus a single-story leasing office and maintenance storage shop with a total of 964 units.
The borrower is Village at Copperfield LLC, a Delaware limited partnership, backed by key principal Joseph Lubeck, a repeat borrower who will co-manage the partnership with ESJ Capital Partners, LLC. The loan is another deal structure with the Fannie Mae Mod-Rehab program including a 10-year term, with 4-years of interest only payments, followed by 30-year amortization period on an 80% loan to renovation cost.
“Earlier this year, we financed Mr. Lubeck’s $25.4 million acquisition of Fountains of Katy, a multifamily property located in Katy, Texas with a similar structure, but with floating rate debt instead of fixed,” explained John Beam, Managing Director, at Hunt Mortgage Group.”
The borrower plans to invest in capital improvements on site to complete an extensive rehab within the next 15 months. Property average occupancy over the past year is 94%, with current occupancy at 91%.
“Villages of Copperfield is located in a Houston sub-market with a very low vacancy rate that consistently supports the demand for multifamily housing,” added Beam. “We believe there is significant upside with the project. Furthermore, we are pleased to arrange the financing of this asset for such an experienced sponsor.”
Built in 1983 as three separate complexes (Hampton Hills, Chesapeake and Waterford), Villages of Copperfield now operate as a single property with three contiguous parcels. The property is comprised of one- and two-bedroom units. Property amenities include three outdoor swimming pools, a tennis court, leasing office with fitness center, and five laundry facilities.