Hunt Real Estate Capital announced today it provided a Freddie Mac conventional multifamily loan in the amount of $21.7 million to finance the acquisition of a multifamily property located in the ‘Litchfield by the Sea’ area of Pawleys Island, South Carolina.
Litchfield Oaks, which was built in 1999, is a 192-unit, three-story, garden-style apartment community that sits on approximately 20 acres. The unit mix is comprised of 18 one-bedroom units, 144 two-bedroom units, and 30 three-bedroom units.
The project is sponsored by DF Ventures, the investment arm of Drucker + Falk, in partnership with Boca Raton-based Eastham Capital. The loan features a fixed-rate, seven-year term that will amortize over 30 years. The first two years of the loan are interest only.
“The borrowers acquired the property because of its strategic location with strong surrounding demand coupled with a scarcity of rental units in the market, as well as high barriers to entry,” noted John Beam, Managing Director at Hunt Real Estate Capital. “Drucker + Falk is an experienced, repeat Freddie Mac and Hunt Real Estate Capital borrower with over 36,000 apartment homes in a portfolio that spans 12 states throughout the Southeast, Mid-Atlantic, and Midwest regions.”
Jim Ledbetter, President & COO of Drucker + Falk, stated, “John Beam and James Kelly, members of Hunt’s Atlanta team, are very responsive and provide certainty of execution in regards to the terms and the timeline quoted at the outset of the acquisition process. They have also exceeded our expectations in the instances we have worked with them, resulting in greater loan proceeds and lower interest rates than were originally underwritten.”
“The borrower plans to fully update unit interiors to reflect high-end finishes of newer properties,” stated James Kelly, Director at Hunt Real Estate Capital. “The $1 million in property improvements include kitchen backsplashes and lighting upgrades; bathroom lighting and faucet fixtures; kitchen and bathroom countertops and cabinetry; the installation of washers/dryers in all units; lighting, doorknobs, and ceiling fans for all common areas; and a fully updated clubhouse.”
“The property improvements and new amenities will allow Litchfield Oaks to exceed the needs of the medical, manufacturing, and retirement demand in the 25-mile radius from Georgetown to Myrtle Beach, South Carolina,” Beam commented in closing.