Hunt Real Estate Capital announced today it provided a 10-year, fixed-rate Fannie Mae DUS® conventional multifamily loan in the amount of $7.5 million to refinance a multifamily property portfolio located in Detroit, Michigan.
East Jefferson Portfolio is a 131-unit, mid-rise apartment portfolio that consists of three properties. Hibbard Tower is a nine-story building containing 44 units and a ground-floor commercial space; the Kean Building is a 15-story building with 49 units; and Trombley Lodge is a four-story building containing 38 units. The buildings were constructed between 1926 and 1931.
“The current owners purchased the property in April of 2017, and since acquisition, have invested $1.6 million to improve the three properties, including significant facade work, commercial build out, elevator repairs, boiler/water heater repair, roof repair, and unit improvements,” noted James Kelly, Director at Hunt Real Estate Capital.
The property has 97% of units specified at below 80% AMI and roughly 27% of units qualify below 50% AMI. The borrower will be implementing additional green initiatives to continue improving this property.
“The properties are located in the East Village, West Village, and Indian Hills submarkets,” added Kelly. “All three submarkets have been performing very strongly over the past few years. They feature a lot of beautiful art deco buildings, mansions, and tree-lined streets, and were once considered prominent locations within Detroit. Today these established neighborhoods are experiencing a rebirth as tenants reclaim these buildings and enjoy the local shops and restaurants that have sprouted up.”
Property amenities include open parking, elevators, and a common laundry facility.