Owners The Barone Group and their strategic partners backed both deals. Duke Stone at Churchill Capital Company represented the owners on both transactions. Acquisition, investment and asset management services were provided by Bear Holdings Group LLC.
“These properties are being acquired as part of a 1031-exchange from the sale of another property that Hunt Real Estate Capital financed for the borrower in 2016,” noted Colin Cross, Director at Hunt Real Estate Capital. “The borrower had a tight timeframe to close the acquisitions and allocate their 1031 funds, so we were thrilled that our partners at Fannie Mae and Freddie Mac stepped up to provide best-in-class financing options during a very volatile period in the debt markets.”
The properties are located within seven miles of each other and include Canyon Woods Apartments in Phoenix, AZ and Shadow Rose Apartments in Glendale, AZ.
Canyon Woods Apartments – Phoenix, AZ
The property was built in 1984 and features 224 apartment units. The community is situated on approximately seven acres and consists of 12, two-story buildings. It is well maintained and features a quiet, family-friendly environment. Hunt Real Estate Capital provided a Freddie Mac loan facility featuring a 12-year term with six years of interest only.
Upon acquisition, the borrower plans to implement a value-add capital improvement plan totaling just over $2 million to complete a variety of interior and exterior upgrades to improve property operations and better compete within the local market. Property amenities include a swimming pool, spa, picnic/playground area and laundry facility.
Shadow Rose Apartments – Glendale, AZ
The property was built in 1985 and features 148 apartment units. The community is situated on approximately 5.86 acres of land and consists of 14, two-story buildings. It is in great physical condition and provides workforce housing for the local community. Hunt Real Estate Capital provided a Fannie Mae loan facility featuring a 12-year term with nine years of interest only. The transaction qualified for Fannie Mae’s Green Rewards loan program where the borrower will implement certain water-saving improvements to lower future utility expenses – in return, they locked an interest rate that was 83bps below standard Fannie Mae pricing at the time.
In addition to the green improvements, the borrower plans to implement a value-add capital improvement plan totaling just over $1.5 million to modernize unit interiors and common area amenities. The community features a swimming pool, spa, playground, laundry facility, and clubhouse.
“The Barone Group is a seasoned sponsor with more than 25 years of real estate investment, development and management experience,” added Cross. “Their firm, along with great partners like Bear Holdings Group and Churchill Capital, has acquired, managed and disposed of a wide range of multifamily assets throughout California, Arizona, Oregon and Nevada – and are known for improving and beautifully repositioning the properties in their portfolio. We were very pleased to work with them again to secure these quality properties.”