Hunt Mortgage Group announced that it provided an $11 million first mortgage bridge loan to finance the acquisition and renovation of a multifamily property located in Phoenix, Arizona. The transaction was sourced by Doug Marshall, CCIM at Marshall Commercial Funding, Inc.
Regency Park Apartments is a 104-unit garden-style multifamily complex that is located at 6333 N. 12th Street which is part of the North Central Phoenix apartment submarket. The property was built in 1971 and consists of six, two-story residential apartment buildings and a single-story clubhouse building.
The property is being acquired through two Tenant-in-Common borrowers and will be owned by Palos Verde Phoenix, LLC and Regency Park Associates, LLC. The loan will include a $1.56 million future funding commitment for capital improvements towards the renovation and improvement of the property. The loan is structured as a 36-month floating rate loan with two options to extend the loan term for a period of 12 months each.
“The borrowers are seasoned commercial real estate and multifamily investors, and repeat Hunt Mortgage Group clients,” noted Sergey Klimov, Vice President at Hunt Mortgage Group. “Regency Park had historically experienced high occupancy and is well located. The planned upgrades will only help boost the appeal of this already well performing property. We were pleased to play a role in the acquisition of this apartment complex.”
Property amenities include a clubhouse/leasing office, pool, fitness center, common laundry room, covered parking, BBQ areas, and vehicle and pedestrian access gates. The unit mix at Regency Park includes 37, one-bedroom apartments and 67, two-bedroom apartments. The property is 90% occupied.
Interior renovations include the lowering of the kitchen wall to create an open floor plan, granite or quartz countertops, stainless steel appliances, upgraded light and plumbing fixtures, new interior doors, paint, laminate wood flooring and carpet in the bedrooms. Planned exterior improvements will include painting, asphalt repairs, entrance and front railing improvements, signage upgrades, clubhouse renovation, pool upgrades, and landscaping improvements.
With convenient access to both the freeway and transit networks, Regency Park places residents just minutes from the dynamic Midtown, Downtown, and Biltmore Corridors as well as central employment and entertainment hubs in the Phoenix area.