Hunt Real Estate Capital announced today that it has provided a Fannie Mae conventional multifamily loan in the amount of $12.7 million to refinance a multifamily property located in Stuarts Draft, Virginia.
Brittany Knoll Apartments is a 153-unit, garden-style apartment complex that consists of 14 three-story buildings and an on-site playground. The borrower built the property between 1998 and 2000 and has owned and self-managed it since.
The borrower is Brittany Knoll LLC, an entity backed by local sponsors. The loan has a 10-year term with a 30-year amortization. Yield maintenance will apply during the first 9.5 years with a 1.0% prepayment thereafter, with the last 90 days open.
“We proudly provided cash-out refinancing for a local sponsor who has owned and managed the asset for over 20 years,” noted Maria Zubillaga, Vice President at Hunt Real Estate Capital. “The property has historically maintained high occupancy and strong cash flow in a small market with low new development activity.”
“We were pleased to be able to secure 10-year, fixed-rate Fannie Mae financing at an aggressive rate, down over 170bps from the Sponsor’s prior mortgage rate,” added Zubillaga.
Stuarts Draft is located in Staunton, Virginia, approximately 108 miles northwest of Richmond. The area is bordered by West Virginia to the North, and benefits from its location in the Shenandoah Valley. The region is a top producer of many commodities in the state with agriculture and manufacturing being the strongest sectors.