Hunt Real Estate Capital, a leader in financing commercial real estate throughout the United States, announced today it provided two loans totaling $61.5 million through its top Seattle-area correspondent, GP Realty Finance, Inc.
“The partnership between Hunt Real Estate Capital and our firm has now provided the first Fannie Mae loan for a micro-housing community,” said Dan Piantanida, Senior Vice President of GP Realty Finance, Inc. “Our firm has been involved with the micro-housing industry since its beginning and we’re pleased to help open the door to this competitive lending source.”
The properties include Areté and Green Leaf at Lakewood.
Located in Kirkland, Washington, Areté is a brand-new, LEED Platinum Plus, mid-rise style apartment community comprised of 290-units housed in five five-story buildings. Hunt Real Estate Capital provided a Fannie Mae loan in the amount of $37.5 million to refinance this property. The loan term is 15-years with amortization based on a 30-year schedule with three years of interest-only payments. Yield maintenance will apply during the first 10 years.
Areté was developed in 2015-2016 and leased up soon after each building opened. The property has 62 conventional apartments and 228 micro-housing units marketed by the property as “ecoflats.” Kirkland is an excellent submarket for micro-apartments, with many major employers and a dearth of affordable housing.
The city of Kirkland is situated in northwest King County, about 14 miles northeast of downtown Seattle and within the Seattle-Tacoma-Bellevue metropolitan service area.
Green Leaf at Lakewood
Hunt Real Estate Capital provided a $24 million Fannie Mae loan to facilitate the acquisition of Green Leaf at Lakewood, a garden-style multifamily property comprised of 19, two- and three-story buildings and a total of 231 units.
Located in Lakewood, Washington, Green Leaf at Lakewood was built in 1990 and the property is situated on 16.84 acres.
Project amenities include a clubhouse, fitness center, playground, swimming pool, sport court and spa/sauna. The loan term is 15-years with amortization based on a 30-year schedule with the initial seven years as interest-only. Yield maintenance will apply during the first 14.5 years.
The property consists of one-, two- and three-bedroom units. Greenleaf at Lakewood is located within five miles of Joint Base Lewis-McChord military base, but the military only accounts for approximately 35% of the tenancy of the property. Lakewood is located in Pierce County within the Seattle-Tacoma-Bellevue metropolitan service area.
“These repeat clients are experienced local investors; one an award-winning builder and the other a top value-add developer,” noted Peter Clasquin, Managing Director at Hunt Real Estate Capital. “Green Leaf will undergo an interior and exterior renovation, which we expect to recapitalize with a supplemental loan within the next few years. Areté is an unsubsidized, affordable, high-quality living experience that is walking distance to many employers and neighborhood services. If every city built projects like Areté there would be no affordable housing crisis in this country.”