Hunt Real Estate Capital, a leader in financing commercial real estate throughout the United States, announced today it provided a $18 million Fannie Mae loan to refinance a multifamily property in Ann Arbor, Michigan.
Hidden Valley Apartments is a 324-unit apartment community located at the northeast corner of State Street and Eisenhower Parkway. Constructed in 1973, the community consists of seven two-story buildings. The unit mix includes 36 studio units, 198 one-bedroom units and 90 two-bedroom apartments.
“The borrower acquired Hidden Valley Apartments in 2011 and over the past two years has invested approximately $1 million in capital expenditures to improve the property,” explained Josh Messier, Vice President at Hunt Real Estate Capital.
The borrower is Cardinal HVC, LLC, a Michigan limited liability company. The loan terms include a 30-year term, 5-years interest-only with a 30 year amortization period, and a 15-year yield maintenance period.
“The Sponsors are experienced real estate investors and developers in Michigan that have been in the industry for almost 30 years,” added Messier.”
Property amenities include a pool, clubhouse, coffee bar and gathering room with Wi-Fi and fireplace, fitness center, racquetball court, table tennis area, tennis court, and sand volleyball court.
“In 2016, the borrower performed upgrades and to date 20 apartments have been renovated. Additional units will be improved during tenant turnover. We were pleased to deliver this loan to a quality sponsor,” concluded Messier.
Hidden Valley Apartments is located in the city of Ann Arbor, which is approximately 44 miles west of Detroit. Ann Arbor has not experienced the same economic hardships as Detroit largely because the area is less dependent on the auto industry. Ann Arbor’s Submarket has remained strong, primarily because of the city of Ann Arbor’s appeal, and the University of Michigan. Matt Shane of Q10|Lutz Financial Services was the mortgage broker and advisor for the transaction.