NEW YORK, NY - Hunt Mortgage Group, a provider of real estate mortgage services for affordable and conventional multifamily housing, announced today that it has provided a $4.5 million short-term bridge loan for Sorrento Park Apartments, a multifamily property located in Bakersfield, California.
The loan was structured under Hunt Mortgage Group’s new proprietary multifamily bridge loan program that provides access to financing for multifamily acquisitions and recapitalizations.
Sorrento Park Apartments is comprised of 84 units in six, two-story buildings plus a single-story clubhouse/laundry facility that was built in 1984 on 3.12 acres. Although the Property is referred to as phase 3, it is not part of a phased project. It is part of the Park Sorrento Apartments complex that is made up of a total of 258 units housed in 18 residential buildings on three contiguous parcels.
The complex was renovated in 1998 and again in 2005. In 2006, Centerline issued a Freddie Mac loan to finance the complex and at that time the owner split the complex in two sections. This was done because the first section was leased and was generating revenue but the second section was still under restoration and all 84 units were vacant. This introduced the phasing.
The bridge loan is secured by a first lien on the complex and carries a one-year term with one optional seven-month extension to match the maturity of the existing loan on the other two phases of the property. The loan is interest-only and includes 1.25 debt service coverage and a loan-to-value of 75%.
“The loan will be used to pull cash out of the third phase of the apartment property that was owned free and clear,” noted Richard Olrich, Managing Director at Hunt Mortgage Group. “The other two phases of the property currently have a fixed rate Freddie Mac loan in the Hunt portfolio. The bridge loan provided was coterminous with the existing loan on the other phases and provides the borrower access to equity in the phase without having to wait for the loan to mature.”
The borrower is Barcelona Housing Partners II, LP, a newly-formed single asset entity.
“The borrower has been a Centerline – and now Hunt client – since 2005, and currently has four loans in our portfolio,” added James Flynn, Managing Director at Hunt Mortgage Group. “The sponsor is a seasoned industry executive with more than 23 years of experience in real estate development. He has clearly demonstrated his commitment to supporting the physical needs of this asset. We were pleased this loan came together so well.”
“Hunt effectively and efficiently structured this deal, enabling us to access the equity we needed,” noted the borrower. “Their loan team was experienced and professional and we truly enjoyed working with them on the transaction. We hope to partner again with Hunt in the near future.”
Property amenities include remote-controlled gated access, a laundry room and a small clubhouse with a kitchen and a bathroom. The small clubhouse is not functional at this time will be refurbished in the near future.
The Hunt Mortgage Group deal team included Richard Olrich, Matthew Olrich, Phil Block, Adam Leiden, Blanca Terrazas, John Hurley, Stacy Benton, and Vanessa Howes.
The Mortgage Banking Group at Hunt Mortgage Group provides mortgage financing for conventional multifamily properties throughout the United States. Hunt Mortgage Group is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider, bridge and CMBS lender, and source for other forms of alternative capital.
About Hunt Mortgage Group: Hunt Mortgage Group, a wholly owned subsidiary of Hunt Companies, Inc., is a real estate finance company providing financing and investing for conventional and affordable multifamily housing throughout the United States. Hunt Mortgage Group is organized around two business units: Mortgage Banking and Affordable Housing Debt. Under the Mortgage Banking and Affordable Housing Debt businesses, Hunt Mortgage Group partners with developers, owners, and investors to provide them with capital to develop, acquire or redevelop their real estate assets. Hunt Mortgage Groupʼs core debt products consist of Fannie Mae, Freddie Mac, or HUD/FHA financing. In addition, through several strategic alliances, Hunt Mortgage Group offers various CMBS executions for multifamily and other commercial properties, proprietary bridge loans and select joint venture equity products. Today the firmʼs lending platform manages and services more than $10.4 billion in loans, of which affordable housing makes up $916 million. Headquartered in New York City, Hunt Mortgage Group has 145 employees in 14 locations throughout the United States. To learn more about Hunt Mortgage Group, visit www.huntmortgagegroup.com