Hunt Real Estate Capital announced today it provided a Freddie Mac multifamily loan in the amount of $8.98 million to refinance a multifamily property located in Mesa, Arizona.
Rancho Palos Verde Apartments is a 152-unit fractured condo community. The borrower now owns all units and will operate the asset as a garden-style apartment complex that consists of 48 one-bedroom, one-bathroom units, 56 two-bedroom, two-bathroom apartments, and 48 two-bedroom, two-bathroom townhouse-style units contained within 13 two-story residential buildings. There is also a single-story clubhouse that contains the leasing office.
“The borrower is a repeat Freddie Mac and Hunt client who has more than 22 years of multifamily real estate development, acquisition, and management experience,” noted Chris Warren, Managing Director at Hunt Real Estate Capital.
“Rancho Palos Verdes Apartments is located in a growing market that consistently supports demand for multifamily housing,” added Warren. “Population in the local market is expected to continue to grow over the near term. We were pleased to play a role in this deal to secure this quality property.”
The borrower acquired the property from various owners, at arm’s length transactions, between September 2018 and February 2019. The subject loan started as a fractured condo loan, but the borrower was able to acquire 100% of the units while Hunt’s loan was in process. Hunt was able to proceed with very limited historical income and expense data due to the fractured condo nature of the asset. Now that the sponsor has fully acquired the property, the plan is to renovate units as they turn over.
Property amenities include a leasing office, fitness center, swimming pool with spa, covered parking, and pedestrian and vehicle access gates.