Hunt Real Estate Capital, a leader in financing commercial real estate throughout the United States, announced today it provided a $6 million Freddie Mac Small Balance Loan to finance the acquisition of a multifamily property located in Orlando, Florida. The transaction is a seven-year fixed-rate loan with a 30-year amortization.
Kensington Cottages is a 169-unit modular-type Cardinal construction multifamily property located at 2917 Burroughs Drive. The property consists of 21, single-story, garden-style residential buildings that were built in 1984. The property also has a common laundry room onsite.
The property serves a majority of tenants that do not qualify for traditional housing assistance but do pay low to very low income rents relative to the area median income. Given this, an exception request was approved by Freddie Mac for a loan amount above the $5 million maximum loan threshold for the Freddie Mac Small Balance Program as a part of its mission to provide affordable housing.
Kensington Cottages was a bank-owned property that was purchased by the seller in 2014 with occupancy reported at 57% and below market rents. Since 2014, the former owners injected approximately $1.8 million in renovations and upgrades including: exterior building improvements, landscape rehab, new fencing, painting, new equipment, electrical, plumbing, HVAC, roof replacement, appliance replacement, flooring, grounds improvements, and parking lot repairs.
“The seller also re-leased the project bringing it more in-line with market levels and the property stabilized in July 2015,” commented Chad Musgrove, Vice President, at Hunt Real Estate Capital. “The new owner is a seasoned local commercial real estate and multifamily investor who has closed more than 3,000 real estate transactions totaling over $500 million.”
“Kensington Cottages is in good condition following the recent rehab and the borrower plans to complete additional repairs and upgrades to the property,” added Musgrove. “We were pleased to deliver quickly and efficiently for such a quality sponsor who plans to continue improving this property.”
Kensington Cottages offers studio, one-bedroom, two-bedroom and three-bedroom units, with a total net rentable area of 101,376 square feet. The property has 271 parking spaces including several handicap accessible.