NEW YORK, NY - Hunt Real Estate Capital, a division of ORIX Real Estate Capital, announced it has provided a Fannie Mae conventional multifamily loan in the amount of $6.4 million to refinance a property located in Glen Burnie, Maryland, a suburban community near the Baltimore-Towson metropolitan area.
Glen Burnie Town Apartments is a 54-unit, four-story property that was built in 2000 and acquired by the borrower in 2018 via a proprietary bridge loan from Hunt. The new Fannie Mae loan puts in place low-cost, permanent financing and provides additional funds for repairs and renovations.
"This closing allowed us to pay off a bridge loan from Hunt, and we executed entirely during the increasing concern over the coronavirus pandemic," said Chip Davis of Corner Lot Advisors, part of the borrowing entity. "To get to the finish line, we all had to be flexible about inspections and understanding what was, and what was not, possible to get the deal done in the time frame necessary."
The Fannie Mae loan features a low fixed rate and 12-year term, with interest only for the first four years. In addition, the closing provides for over $125,000 in renovations, including resurfacing a concrete courtyard, upgrading units, and improving elevated walkways.
"This property had a commercial space we could not count in the underwriting, and we had additional escrows required by Fannie Mae," said Bryan Cullen, senior managing director at Hunt Real Estate Capital. "Yet there were enough excess proceeds to fund these escrows and we fully expect this property to perform well through the next year to return these funds to the borrower."
The property will continue to be managed by Promark Real Estate Services, LLC, a privately owned, full-service real estate company serving the National Capital Region.
Source: Hunt Real Estate Capital