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 $2.7 million Fannie Mae adjustable rate loan facility to refinance East Boros Apartments, an affordable multifamily community located in Monroeville, Pennsylvania.
East Boros Apartments is an affordable Section 8 subsidized mid-rise apartment building containing 101 apartment units housed in one eight-story building. The property was developed in 1978 and is operated under a project-based Housing Assistance Payments Contract (“HAP”). The borrower purchased the property in October 2012.
Hunt Mortgage Group recommended that the borrower select Fannie Mae’s 7/6 ARM program to refinance the property. The non-recourse adjustable-rate loan has a seven-year term, one-year lockout followed by one percent prepayment penalty thereafter, and a 30-year amortizing schedule. The variable rate financing with an embedded cap allows the borrower to take advantage of the current low interest rate environment with an option to convert to a fixed rate with no prepayment premium. In addition, the borrower may request supplemental financing at any time.
“The borrower has been acquiring, rehabilitating and managing multifamily real estate since 2000, and the majority of those acquisitions have involved properties with project-based Section 8 housing properties,” explained Jim Gillespie, Managing Director at Hunt Mortgage Group. “A core focus of our affordable housing platform is on the financing and preservation of existing affordable housing. We believe the preservation market will continue to grow over the next five years and this is exactly the type of transaction we want to be pursuing.”
All of the apartments at East Boros are one-bedroom units restricted to tenants who are age 62 or older. The property is located next to the University of Pittsburgh Medical Center and within a mile of shopping and entertainment. Property amenities include a central laundry center, community room, computer room, fitness room, outdoor patio with picnic and shuffleboard areas, on-site maintenance and on-site management. The local rental market is stable with no new supply of multifamily housing in the pipeline.
Hunt Mortgage Group provides 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.