CHATTANOOGA, TN - Hunt Real Estate Capital announced that it provided a first mortgage bridge loan in the amount of $27.35 million to finance the acquisition and renovation of a multifamily property located in Chattanooga, Tennessee.
Rise at Signal Mountain is a 280-unit, garden-style multifamily community located at 1185 Mountain Creek Road. The property consists of a 42.9-acre site and is comprised of 19 two- and three-story residential buildings built in 1986. The property is 99% occupied.
The non-recourse interest-only first mortgage bridge loan features a 30-month term with three extension options.
The borrower is StoneRiver Company, LLC, a Birmingham, AL-based company founded in 1995 to manage real estate investments for high net worth individuals.
"Rise at Signal Mountain is very well located and benefits from solid access and visibility from roadway frontage," said Chad Hagwood, Senior Managing Director at Hunt Real Estate Capital. "The borrower will invest just under $2 million in additional capital improvements post-closing."
The borrower plans to complete exterior and common area/amenity upgrades to the property to bolster the property's curb appeal and enhance the resident experience. Exterior renovations will commence in April 2020 and are projected to be completed in six to nine months.
"Given the intent of the new owner to upgrade the property with improved street appeal and to renovate unit interiors and common areas, the property is expected to perform very well over the coming years," added Hagwood. "The borrower targets multifamily assets in growing markets with investments in either new developments or value-add investment strategies."
"This city has emerged as a thriving economic region with strong job growth, a highly educated work force, and an innovative technology infrastructure," stated Lou Davis, Vice President of Investments at StoneRiver. "StoneRiver remains bullish on the fundamentals of the Chattanooga market, and our team is focused on growing our multifamily portfolio there in the future."