Hunt Real Estate Capital announced today that it has provided a Freddie Mac Small Balance Loan in the amount of $5.2 million to refinance a multifamily property located in El Cajon, California.
Lincoln Palms is a 48-unit, walk-up style apartment community that is comprised of three buildings that are currently 100% occupied. There are 53 parking spaces available onsite, as well as street parking located in the surrounding neighborhood. The property was built in 1967 and most units have been upgraded.
The unit mix includes 31 one-bedroom, one-bathroom units and 17 two-bedroom, one-bathroom apartments. Some of the units have private patios/balconies.
The borrower is 191 South Lincoln Avenue, LLC. The transaction, which was arranged by Hugh Seifert of Barrington Capital, is structured as a 20-year loan with a 10-year fixed-rate period.
“Due to their strong market expertise, this local, repeat borrower has been a successful real estate owner/operator in the San Diego market for the past 33 years. They purchased Lincoln Palms in 2003 and over the past three years invested approximately $170,000 in capital improvements onsite,” commented Jack Alvarez, vice president at Hunt Real Estate Capital. “They secured the new loan to refinance existing debt with plans to invest back into Lincoln Palms and pursue additional multifamily opportunities in the local market.”
The capital expenditures implemented include new appliances, roofs, HVAC, painting, flooring, and landscaping.
“El Cajon and the greater San Diego County is designated as a very cost-burdened market with some of the highest rent levels in the United States. Lincoln Palms provides economical housing options to El Cajon and aligns directly with Hunt Real Estate Capital’s mission of financing housing that is affordable for our nation’s workforce,” added Alvarez. “Even at a loan amount over $5 million, we were able to execute through Freddie Mac’s Small Balance Program, which provides a streamlined loan process, low fees, and a best-in-class coupon pricing that is held at application.”
Property amenities at Lincoln Palms include a pool and laundry facility.