Hunt Real Estate Capital announced today that it has provided a Fannie Mae Small Loan in the amount of $2.3 million to finance the acquisition of a multifamily property located in Atlanta, Georgia.
Overlook Terrace is a condominium community whereby the borrower acquired 34 of the 35 townhome-style units.
“Despite being condominiums, the property has always been operated as an apartment community since it was built in 1990,” noted James Kelly, Director at Hunt Real Estate Capital.
The property is comprised entirely of three-bedroom units. All units qualify as affordable at 80% of AMI. The loan is a 10-year Hybrid ARM with a 30-year term that features a step-down prepayment structure.
“The sponsor is Steve Morrows of DeVanDylan Capital Partners LLC, a seasoned multifamily investor that is a repeat Fannie Mae client,” added Kelly. “His firm is primarily focused on acquiring and managing undervalued multifamily assets in strategic growth markets to reposition them to provide quality housing options for local residents.”
“The plan is to escrow $200,000 for planned interior and exterior renovations that include façade repairs, restriping the parking lot/concrete, various landscaping improvements, and adding property signage,” said Steve Morrows, President at DeVanDylan Capital Partners LLC. “Interior renovations will consist of replacing countertops, the installation of new kitchen and bathroom appliances/finishes, and replacing unit flooring.”
Overlook Terrace is located in the Clayton/Henry submarket, which is approximately 13 miles south of downtown Atlanta.
“The submarket has shown strong rent growth alongside the rest of the Atlanta Metro area,” Kelly added.