Hunt Real Estate Capital provided a first mortgage bridge loan in the amount of $21 million to finance the acquisition and renovation of a multifamily property located in Greensboro, North Carolina.
The property, a 332‐unit garden-style multifamily community located approximately six miles north of downtown Greensboro, was built in 1987 and 1996 and consists of 17, two‐story apartment buildings and a clubhouse/leasing office.
“While the former owner maintained the property, it has not undergone any renovations or improvements for the past 11 years,” explained RJ Guttroff, Managing Director at Hunt Real Estate Capital. “Upon acquisition, the new owners will rebrand the property and implement a capital improvement plan exceeding $4 million to upgrade and reposition the property.”
Planned interior upgrades include granite countertops, new cabinets, stainless steel appliances, wood‐vinyl plank flooring, painting, and new fixtures. Common area and exterior improvements will include new signage, security gate, landscaping, replacing and painting exterior siding, replacing sliding glass doors and windows, asphalt repairs, roof access repairs, and amenity upgrades to the fitness center, clubhouse, and pool area, including the addition of a dining area with grills.
“The borrower will renovate unit interiors as they turn with a goal of maintaining occupancy during the renovations, as they are planning to upgrade apartments at a rate of 11 per month,” added Guttroff. “The new owners are repeat Hunt Real Estate Capital borrowers with a proven track record of success in the local market. In recent years we have partnered with them on four bridge loans. We were pleased to place this loan for a quality client. The financing was arranged by Majority Capital Advisors.”
The property is well located just east of an upscale section of Greensboro along North Elm Street at Pisgah Church Road, where corporate offices provide employment and upscale shopping is located at the North Elm Village.
The unit mix is comprised of 64 one-bedroom, one-bathroom apartments, 74 two-bedroom, one-bathroom units, 130 two-bedroom, two-bathroom apartments and 64 three-bedroom, two-bathroom units. The property is 90 percent occupied.
Property amenities include a clubhouse/office with indoor and outdoor pools. There are also multiple barbecue areas, a playground, and a laundry room in the clubhouse with three washers and three dryers.