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 $5.6 million to refinance a student housing property located in Ann Arbor, Michigan.
Varsity Portfolio is comprised of three buildings containing 44-units located at 418 E. Washington Street, 1015 W. Huron Street and 1015 Vaughn Street. The buildings were developed in 1963-1967 and have 26,030 square feet of rentable space. The property was renovated in 2013-2015.
The Borrower is KRP, LLC, a Michigan limited liability company. This transaction is structured with a 12-year term with 11.5 years yield maintenance, two years of interest only, followed by a 30-year amortization schedule.
“The Borrower is a solid local investor with a wealth of experience owning and managing student housing properties,” noted Daniel Eibler, Director at Hunt Mortgage Group. “He and his family have owned the Washington Street location for 46 years, the Vaughn Street property for the past 16 years and the Huron Street location since the 1980s.”
Varsity Portfolio is currently 100% occupied, and has been so for the past 72 months. The buildings are in good condition and has been well maintained with normal levels of capital investment being invested to address necessary and preventative maintenance.
“All three properties are located within walking distance to the University of Michigan Campus, and a University of Michigan bus stop is located near two of them,” added Eibler. “We were pleased to deliver this new loan for a quality local borrower.”
The financing was coordinated by Aaron Klein, mortgage banker and principal of Ann Arbor, Michigan-based Commercial Mortgage Capital, Inc.
The property offers studio apartments, one-bedroom, one-bathroom units and two-bedroom, one-bathroom apartments. The area immediately surrounding Varsity Portfolio is predominately multifamily and retail. The property is located approximately 2.5 miles away from Interstate 94 which provides easy access to nearby Willow Run Airport and the neighboring city of Detroit.