NEW YORK, NY - Hunt Real Estate Capital announced that it has provided a $24.5 million Freddie Mac conventional multifamily loan to finance the acquisition of a multifamily property in Lexington, South Carolina.
Lullwater at Saluda Pointe is a 280-unit, garden-style apartment community situated on 23.3 acres. The 2007-built property is comprised of 11 three-story residential buildings and a one-story leasing office/clubhouse.
The borrower, Lullwater DE Holdings, LLC, acquired the property from Fickling & Company through a 1031 exchange.
"This is the type of transaction every sponsor strives to achieve," said John Sloot, Vice President at Hunt Real Estate Capital. "The borrower purchased an older asset in this market several years ago, improved its operations, and then sold it in order to purchase a superior repositioning opportunity in a stronger submarket."
The borrower will invest approximately $1.56 million in capital improvements on site. Planned interior improvements include new kitchen counters and backsplashes, stainless steel appliances, light fixtures, faux wood floors, and screened porches. The borrower is also planning to install washer and dryers in 60% of units, replace exterior windows, renovate the clubhouse, add a dog park, paint, and improve landscaping.
"We were very pleased to provide the Freddie Mac financing for this premier ownership group," added Colin Cross, Director at Hunt Real Estate Capital. "While it was a very volatile time in the debt markets, working with a professional and experienced Sponsor and great partners like John Brickson of Old Capital in Dallas, who arranged the acquisition financing on behalf of the Sponsor, was instrumental to getting the deal across the finish line."
Lexington, South Carolina, is located 10 miles from downtown Columbia, within the second-largest MSA in the state of South Carolina.
Source: Hunt Real Estate Capital