Magic City Apartments consists of 12 units within two, two-story garden-style apartment buildings located at 5954 NE 4th Court and 5990 NE 4th Court. The property also features 14 surface parking spaces.
The borrower is Magic City Apartments LLC, a single-purpose, Florida Limited Liability Company backed by a local real estate investor. The loan terms include a 10-year term with a declining fixed rate prepayment and the first five years of interest only. Loan proceeds will be used to pay off existing debt and provide cash-out which the borrower plans to reinvest into multifamily real estate investments.
“Since acquiring the property in October of 2017, the borrower has invested approximately $250,000 to implement a combination of building and unit interior improvements,” noted Chad Musgrove, Vice President at Hunt Real Estate Capital. “In addition, the borrower plans to invest approximately $185,000 in additional capital improvements within the next 12 months.”
The property is 100% occupied, with average historical occupancy ranging from 91% to 100% over the trailing four months.
“The borrower is a full-time real estate investor that began acquiring and managing multifamily properties in 2016 and has experience in the acquisition and management of single-family rental properties,” added Musgrove. “He currently has interests in two multifamily properties comprising 17 units, 34 single-family rental properties, one duplex rental property, four condo rental units, and one office building all located in Florida.”
“We were pleased to offer the financing needed to secure and continue to improve Magic City Apartments. The property is backed by a quality sponsor and is located in a stable rental market in close proximity to a number of family-oriented attractions and transportation,” concluded Musgrove.