Hunt Real Estate Capital, 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 $5.3 million to refinance a multifamily property located in Detroit, Michigan.
Pasadena Apartments is an 11-story mid-rise apartment building consisting of 167 residential units, two retail units and a roof-mounted cellular tower. The property is located along the East Jefferson corridor within the City of Detroit, just east of the Detroit Central Business District.
The borrower is Pasadena Investments, LLC, a single-asset Limited Liability Company backed by Scot Turnbull and his brother Craig Turnbull. The loan is a ten-year fixed-rate loan, with three years of interest-only followed by 30 years of amortization.
“The borrower is a first time Hunt Real Estate Capital and Freddie Mac sponsor,” noted Josh Messier, Director, Hunt Real Estate Capital. “They purchased Pasadena Apartments in March of 2009 and have invested approximately $4.5 million in capital improvements since acquisition. The improvements have really helped enhance the asset quality of the property.”
Improvements completed since acquisition include kitchen renovations, exterior waterproofing and painting, new corridor lighting and paint, automated hard-wired fire detection and panel, new laundry room, elevator cabs, Wi-Fi, and security cameras.
“The borrowers are from the Detroit area and have successfully managed their family’s 50-year real estate portfolio, which is based exclusively in Detroit, for the past 12 years,” added Messier. “The family’s portfolio has primarily consisted of multifamily assets with a few commercial properties sprinkled in. We were pleased to provide this small balance loan to this quality borrower and hope to partner with them again in the near future.”
Matt Shane from Q10|Lutz Financial was the advisor on the transaction. Scot Turnbull is a long-time client of Shane and Q10|Lutz Financial.
Built in 1902 on a 0.487-acre parcel of land, Pasadena Apartments is 92% physically occupied and the commercial occupancy is 100%. Property amenities include gated parking and a laundry