Hunt Mortgage Group Closes Seven FHA Deals
— Total funding equals $102 million —
New York, NY — March 3, 2015 — Hunt Mortgage Group, a commercial real estate lender, announced today that it has financed seven affordable housing projects with FHA/HUD loan facilities. The total Hunt investment is $102 million and the properties include:
- Fairview Crossing Apartments. Formerly known as Cypress Lake Apartments, Hunt Mortgage Group provided a $12 million FHA/HUD 221(d)(4) loan to facilitate the acquisition and rehabilitation of the property, to be re-branded as Fairview Crossing Apartments. Located in Lake Charles, Louisiana, the property is comprised of 22 buildings for a total of 275 units that were originally built in 1983. The unit mix consists of 92 one-bedroom units, 156 two-bedroom units, and 27 three-bedroom units. The loan was structured with short-term tax exempt bonds issued by the Louisiana Community Development Authority, 4% LIHTCs, and additional soft funding from the Louisiana Housing Corporation. The borrower is Mirus Lake Charles, LLC, sponsored by Mirus Partners based in Middleton, WI, and key principals Chris Jaye and Kristi Morgan. The financing provided by Hunt Mortgage Group will allow for improvements and modernization to Property that will enhance the overall condition and aesthetic appearance, while providing quality affordable housing over the long term.
- Mountain View Apartments. Hunt Mortgage Group provided a $3.6 million FHA/HUD loan facility to refinance Mountain View Apartments, a multifamily property located in Bristol, Tennessee. This affordable property received an allocation of 9% LIHTCs in 2013 from the Tennessee Housing Development Agency, and had existing Project-Based Renal Assistance, via a Section 8 Housing Assistance Payment Contract. Mountain View consists of six, two-story garden style townhouse apartment buildings and four, two-story walk-up buildings. The unit mix consists of 16 one-bedroom, one-bathroom units, 40 two-bedroom, one-bathroom apartments, 30 three-bedroom, one-and-a-half bathroom townhomes and eight four-bedroom, one-and-a-half bathroom townhomes. The borrower is Mountain View Apartments II, L.P., a Tennessee limited partnership formed in January 2013 for the purpose of owning an operating the property. The primary sponsor is Lawler Wood Housing Partners, LLC based in Knoxville, TN. The property, originally built in 1979, underwent a substantial rehabilitation in 2013-2014 that completely modernized all unit and common area amenities. Property amenities include a fully renovated clubhouse building with central laundry, community room with kitchen area, computer stations and leasing/management offices.
- Audubon Apartments. Located at 2323 Adam Clayton Powell Jr. Blvd, Audubon Apartments is comprised of 88 multifamily rental units located within the Central Harlem neighborhood of Manhattan. Hunt Mortgage Group provided a $14.2 million FHA loan to refinance Audubon Apartments. The borrower is a single asset entity formed for the purpose of owning and operating the project. Audubon consists of a five-story plus basement apartment building built around 1928.
- Site A – Washington Heights Apartments. Hunt Mortgage Group provided a $22 million FHA loan for the refinance of Site A-Washington Heights Apartments, an affordable 110-unit rental community located at 2036 Amsterdam Avenue in New York. The borrower is a newly formed single asset entity for the purpose of owning and operating the property. The property is comprised of a six-story apartment building with partial sub-grade basement level that was constructed in 1983. The unit mix consists of 24 one-bedroom, one-bathroom units, 74 two-bedroom, one-bathroom apartments, and 12 three-bedroom, one-and-a-half bathroom units.
- Gateway Apartments. Gateway Apartments consists of one six-story building with a basement that was built around 1920. The property houses 59 total apartments and was renovated in 1984. Hunt Mortgage Group provided a $15.3 million FHA loan to refinance the property. The property is located in the Central Harlem neighborhood of Manhattan at 49 Lenox Avenue and the borrower is a newly formed single asset entity for the purpose of owning and operating the property. The unit mix consists of 14 one-bedroom, one-bathroom apartments, 35 two-bedroom, one-bathroom units, and 10 three-bedroom, one-and-a-half bathroom apartments.
- MS Houses Apartments. Located at 107-123 East 129th Street within the East Harlem neighborhood of Manhattan, MS Houses Apartments is an 8-story apartment building with two adjoining garden-style townhouse buildings that was built in 1984. The mid-rise building houses 112 apartments, including one superintendent’s 2-bedroom unit and the remaining 19 units are the 4-bedrrom townhouses. Hunt Mortgage Group provided a $30 million FHA Loan to refinance MS Houses Apartments.The unit mix consists of 51 one-bedroom, one-bathroom units, 61 two-bedroom, one-bathroom apartments, and 19 four-bedroom, one-and-a-half bathroom apartments. MS Houses Apartments also has a basement level under the 8-story portion of the building.
- Tweemill House Apartments. Hunt Mortgage Group provided a $5.5 million FHA loan facility to refinance Tweemill House Apartments. Located at 145 E. 126th Street in the East Harlem neighborhood of Manhattan, Tweemill House Apartments is a comprised of 40 units housed within one, six-story building. The property was built in 1990 and the unit mix offered consists of 10 studio apartments, 25 one-bedroom, one-bathroom apartments, and 5 two-bedroom, one-bathroom units. Funds from the new loan facility will address deferred maintenance and capital improvements at the property and will replenish capital and working reserve accounts.
“All of these properties are well established in their respective local markets and serve low and moderate-income families with quality housing,” commented a Hunt spokesperson. “These transactions will help preserve much needed affordable housing in support of the local neighborhood communities. The borrowers were all highly motivated to create 35-40 year rate certainty for the transactions which will all be governed by various long-term LURA’s to maintain the assets as affordable housing. In addition, demographic and economic indicators portray a positive outlook going forward for continued rental demand in these areas.”
About Hunt Mortgage Group
Hunt Mortgage Group, a wholly owned subsidiary of Hunt Companies, Inc., is a specialty finance company focused on financing commercial real estate nationwide. The Company specializes in financing multifamily properties, but also finances: affordable housing, manufactured housing, healthcare/senior living, office, retail, industrial, and self-storage facilities throughout the United States. It offers Fannie Mae, Freddie Mac, HUD/FHA and its own proprietary loan products. The Company maintains a servicing portfolio of over $10.9 billion. Headquartered in New York City, Hunt Mortgage Group is comprised of 136 employees located in 15 locations throughout the United States. To learn more about Hunt Mortgage Group, visit www.huntmortgagegroup.com.