Hunt Real Estate Capital announced that it provided a $12.66 million first mortgage bridge loan to enable the acquisition and renovation of a multifamily property located in Austin, Texas.
The property is a 160-unit garden-style multifamily property that was built in 1984. It is situated on a single parcel of land totaling 4.481 acres and consists of 10, three-story apartment buildings and a clubhouse/leasing office building.
The loan is structured as a 36-month floating-rate loan with two, one-year options to extend the loan term.
“The borrower is a multifamily property investment company focused on the acquisition of value-add apartment complexes,” explained RJ Guttroff, Managing Director at Hunt Real Estate Capital. “The firm has been acquiring investment properties since 2012, targeting quality projects that provide value-add and opportunistic returns. They have the ability and experience to quickly recognize opportunities and close in a timely manner.”
The borrower plans to employ a $1.59 million capital improvement plan. This will include repairs and replacements to the exteriors of the property, additional landscaping, upgraded signage, clubhouse renovation with pool upgrades, flatwork repairs, parking lot resurfacing, plumbing fixes, foundation work, stair repairs and roof repairs. Planned interior improvements include the installation of stainless steel appliances and other bathroom and kitchen upgrades.
“The borrower has successfully renovated and improved other assets within the local market,” added Guttroff. “He has a strong track record and experience in acquiring, renovating and managing multifamily apartment communities. We were pleased to partner with him and provide this new loan.”
Property amenities include a management office, laundry facility, swimming pool, a spa, a dog park, BBQ and picnic area and gated access. The property is comprised of 58 efficiencies, 48 one-bedroom apartments and 54 two-bedroom apartments.