Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it provided two Freddie Mac Small Balance Loans and a Fannie Mae Conventional Green mortgage to refinance a three-property multifamily portfolio located Bakersfield, California. The Hunt Mortgage Group investment totaled approximately $17 million.
The properties include:
- Village Lane Apartments. Hunt Mortgage Group provided a Freddie Mac Small Balance Loan in the amount of $6 million to refinance Village Lane Apartments, a 200-unit multifamily property located at 5101 Marsha Street. The property consists of 33, one- and two-story buildings with 79 one-bedroom units, 120 two-bedroom apartments and one three-bedroom unit. With the refinance of Village Lane Apartments, the borrower will receive about $300,000 in cash-out proceeds that will be used to further renovate the subject property with green improvements. The borrower has owned the property since 1979 and in 2017 invested $60,000 in solar panels. Property amenities include two laundry rooms and a pool.
- River Oaks Apartments. River Oaks Apartments is a 46-unit multifamily property located at 336 Roberts Lane and 314 & 400 Locust Street. Hunt Mortgage Group provided a Freddie Mac Small Balance Loan in the amount of $1.86 million to refinance this property. The borrower will cash out approximately $150,000 at loan closing to renovate and to make green improvements on site. To date, the borrower has already purchased $60,000 in solar panels that will be installed post close. The property includes 15, one and two-story buildings consists of all two-bedroom units. Property amenities include a central laundry room with two washers and two dryers.
- Park Villa Apartments. Hunt Mortgage Group provided a Fannie Mae Conventional Green mortgage in the amount of $9 million to refinance a 224-unit apartment community known as Park Villa Apartments. The loan will be executed as a Green Rewards Mortgage Loan with the borrower completing energy-saving improvements to the property post close. The property is located at 1405 White Lane and is comprised of 48, one-story residential buildings, including 223 one-bedroom one-bathroom apartments, (1) two-bedroom, (1) bathroom unit and (1) two bedroom one-and-a-half bathroom apartment. Park Villa Apartments was built in 1973 and has 371 open parking spaces.
In the 2014-2016 timeframe, the borrower spent more than $250,000 on capital improvements, including repaving the asphalt, new carpets and flooring, roof tune-ups, and new water heaters. Property amenities include two outdoor and one indoor swimming pool, clubhouse, business center, fitness center, tennis court, laundry rooms and a BBQ/picnic area.
“The borrowers are experienced commercial real estate owners that reside in Bakersfield and have approximately 40 years of experience in multifamily real estate,” noted Chris Warren, Vice President at Hunt Mortgage Group. “These sponsors currently own and operate five apartment projects in California with a total of 475 units. The sponsors have owned investment properties over the past 30 years in the area, strongly rooting them to the local community.”
The structure of the two Freddie Mac loans is a ten-year fixed-rate loan, with no interest only and a 30-year amortization schedule, and the conventional mortgage has a 12 year with a 30-year amortization term.
“We structured this unique deal that included a combination of the Freddie Mac Small Balance and Fannie Mae Conventional Green products to best serve the needs of the client,” added Warren. “We were pleased to work with this quality borrower to provide the financing to improve these three quality properties.”