Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it provided a Freddie Mac Small Balance Loan in the amount of $5.5 million to finance the acquisition of an affordable multifamily property located in Philadelphia, Pennsylvania.
Reach Lofts Apartments is located at 1701-1707 Tulip Street, and consists of a five-story apartment building containing a total of 30 residential units.
The borrower is MM Equity Partners Philly LLC, a single-asset Limited Liability Company formed in the State of Delaware that is managed by Elie Mamiye. The transaction is a seven-year fixed rate loan with an overall loan term of 84 months, with the first two years interest-only followed by seven years of 30-years amortization and a yield maintenance prepayment schedule.
“Reach Loft Apartments was built in 1900 and was originally a baseball making factory,” explained Harris Heller, Managing Director at Hunt Mortgage Group. “The seller performed a gut renovation in 2015 repurposing the property into a multifamily property at a renovation cost of approximately $3.6 million.”
The unit mix consists of 21, one-bedroom, one bathroom apartments; seven two-bedroom, one- bathroom units; and two, two-bedroom, two-bathroom apartments. Property amenities include in–unit washer and dryers, bike storage, and a furnished roof deck that is accessible to the tenants.
“Reach Loft Apartments is located in the Fishtown section of the city of Philadelphia, approximately 2 miles north of the city’s central business district,” added Heller. “The area has seen a renaissance in the past couple of years and the outlook for the neighborhood is positive. We were pleased to provide the financing to secure the acquisition of this unique property.”