NEW YORK, NY - Hunt Mortgage Group, a commercial real estate lender, announced today that it has provided a $16.4 million Freddie Mac loan to refinance The Groves Apartments, a multifamily property located in Gresham, Oregon.
Located at 3500 NE 17th Street, The Groves Apartments is a garden style multifamily complex comprised of 13 buildings including 12 two-story residential buildings with 200 units, plus one two-story building with the leasing office on the first floor and 1one residential unit on the second floor. The Property was built in 1971 and covers over 9.15 acres.
The borrower is NBP Capital, LLC, a Delaware limited liability company, backed by Lauren Noecker and Spencer Noecker.
“This is the first Freddie Mac deal we have done with NBP after doing a number of Fannie Mae DUS transactions,” commented Bryan Cullen, Managing Director with Hunt Mortgage Group.
The property was purchased in 2012 and they have spent more than $2.8 million in capital repairs and improvements including: new windows, exterior siding, restoration of paved areas, landscaping, and construction of a 43 single-car garage as well as partial or full renovation of 37 units. Another $1 million of improvements is underway that includes a new clubhouse.
“One of the challenges was the property was in lease up in the spring and there was a CMBS maturity that required payoff on either July 13th or August 11th. The rent collection target was reached in June and supported with preliminary July numbers so we were able to rate and close at the earlier date,” Cullen added.
Lauren Noecker said, “We were pleased with our first Freddie Mac experience. Hunt Mortgage Group was able to hold the spread and fund a loan at 80% of value on the first day possible.”
Brad Willson of Marcus & Millichap Capital Corporation was the broker on the transaction. He added, “We are currently working with Hunt Mortgage Group and NBP on a number of Freddie Mac Small Balance Loans now that we’ve broken the ice.”
The Groves Apartments is located approximately 18 miles east of downtown Portland. Surrounding properties in the area are complimentary and include single family homes, condominiums and Mount Hood Community College. Project amenities include a swimming pool, a leasing office, and off-street parking for 368 cars including 43 single-car garages and 325 open spaces. Work is currently underway to renovate the leasing building, and to build a clubhouse and gym that will have all new fitness equipment. The work is scheduled to be completed in September 2015.
About Hunt Mortgage Group: Hunt Mortgage Group, a wholly owned subsidiary of Hunt Companies, Inc., is a market leader focused on financing commercial real estate throughout the United States. The Company finances all types of multifamily properties (including small balance), affordable housing, office, retail, manufactured housing, healthcare/senior living, industrial, and self-storage facilities nationwide. It offers Fannie Mae, Freddie Mac, HUD/FHA in addition to its own proprietary loan products. The Company maintains a servicing portfolio of $11 billion. Headquartered in New York City, Hunt Mortgage Group is comprised of 147 employees located in 15 locations throughout the United States. To learn more about Hunt Mortgage Group, visit www.huntmortgagegroup.com