Hunt Real Estate Capital announced it has provided three Fannie Mae conventional multifamily loans totaling $25.4 million to refinance a portfolio of multifamily communities in the Dallas, Texas area.
Built in 1959, Spanish Villas is a 148-unit, garden-style multifamily community located in Grand Prairie, Texas. Spanish Rose, which has 76 units and was built in 1961, and Spanish Ridge, which has 372 units and was built in 1969, are both located in Dallas. On a combined basis, 96% of the portfolio’s units are mission-driven.
“This successful portfolio refinance was the latest in a long string of successful transactions with this Dallas-based borrower,” said Steven Cox, senior managing director with Hunt Real Estate Capital. “By relying on our strong relationships and ability to be nimble when necessary, we were able to streamline the process and reach an efficient close despite the challenges posed by the recent pandemic.”
The borrower key principal, Tim Gillean, president of Cross Equities, is an experienced owner/operator and longtime repeat Hunt client and Fannie Mae borrower. Substantial improvements to all three apartment communities have been made in recent years. With the properties up-to-date and performing well, the objective of this transaction was to put in place cost effective permanent debt and provide cash-out proceeds to pursue additional multifamily opportunities.
“As always, it was a pleasure to work with Steven and the team at Hunt, who seamlessly executed our transaction during this uncertain time, securing the lowest rate on a deal that I have seen in my 25-year history in the multifamily business,” Gillean stated.
By structuring the Fannie Mae loans at low loan-to-value (LTV) levels, the borrower was able to avoid and limit the contribution of additional principal and interest escrows. The result was exceptional pricing on the Fannie Mae loans, which feature low, fixed interest rates, 10-year terms and 30-year amortization schedules.