Hunt Real Estate Capital, a division of ORIX Real Estate Capital, has closed a $6.4 million Fannie Mae Moderate Rehabilitation loan to refinance and renovate an affordable multifamily community located in Grand Junction, Colorado.
Built in 1979, Grand Manor Apartments is located in Mesa County and operates with a Section 8 Housing Assistance Payment (HAP) contract covering all 112 units. The sponsor is Rocky Mountain Communities, a nonprofit organization founded in 1992 that invests in resident-focused affordable housing and services. Rocky Mountain Communities has developed more than 2,500 units and currently owns and manages more than 1,135 affordable housing units across Colorado.
“We are proud to partner with Rocky Mountain Communities to help them renovate and preserve 112 affordable units in Grand Junction, Colorado,” said Timothy Hoppin, director at Hunt Real Estate Capital. “Proceeds from the Fannie Mae Moderate Rehab loan will be used to complete in-unit and common area upgrades. Rocky Mountain Communities has provided affordable housing and resident services to more than 11,000 families across Colorado over the past 25 years.”
The loan features a low, fixed interest rate and 30-year term and amortization schedule. The successful closing refinances existing debt on the property and provides $2.4 million for renovation, which translates to approximately $21,000 per unit. The projected 12-month renovation schedule will be tenant-in-place, meaning no residents are expected to be relocated.
Major exterior renovations include roof replacement, retaining wall construction, parking lot repair, water and sewer line repairs, fence replacement and the construction of a maintenance shop. Interior renovations include, but are not limited to, new flooring, kitchen and bathroom upgrades, and air furnace replacements.