Press Release brought to you by Hunt Mortgage Group

Hunt Mortgage Group Refinance Two Multifamily Properties Located in Houston, Texas

08/04/2014

— Total funding equals $12.5 million —

New York, NY — August 5, 2014 — Hunt Mortgage Group, a provider of real estate mortgage services for affordable and conventional multifamily housing, announced today that it has provided $12.5 million in Fannie Mae financing to refinance two multifamily properties located in Houston, Texas. 

Hunt Mortgage Group is a subsidiary of Hunt Companies, formerly Centerline Capital Group.  The borrower is a Texas Limited Partnership.  The properties include:

»      Hammerly Villa Apartments.  A 174-unit property located in western Houston, Hammerly Villa Apartments contains a mix of one-, two- and three-bedroom units, and is comprised of 13 apartment buildings plus a leasing office and two laundry rooms.  After its acquisition in 2000, the owners made extensive improvements to the exteriors and interiors of the units, totaling approximately $850,000, or $4,885 per unit.  Hunt provided a $4 million loan facility for this property that was constructed in 1972.

»      Eagle Hollow Apartments.  Hunt provided an $8.5 million loan to refinance Eagle Hollow Apartments, a multifamily property located on an irregular-shaped parcel of land containing 10 acres. This property benefits from direct access to Wickchester Lane, which is a publicly dedicated street maintained by the City of Houston. Improvements were made to the facility in 1982 and the property consists of 19 two- and three-story apartment buildings and a one-story leasing/community building. The property comprises a total of 350 units.

Proceeds from the loan will be used for a rate and term refinance of existing FNMA DUS loans that have been in the Hunt (formerly Centerline Capital Group) portfolio since 1998. “The new loans will lower the debt service payments and we timed the closings to avoid any prepayment penalties,” explained Bryan Cullen, Managing Director with Hunt Mortgage Group.  “Eagle Hollow’s debt service will drop by $130,000/year and Hammerly’s by $44,000/year.”

Hammerly was a Tier 3 loan and carried a seven-year fixed rate of 4.12% while Eagle Hollow was a Tier 4 loan and the rate was 3.82%.

“I inherited this relationship from a retired originator and had to work hard to gain the Sponsor’s trust,” added Cullen.  “These two deals are the most recent of seven deals we have done over the last five years, so we must be doing something right.  The challenge was in managing the Early Rate Lock process and the open periods of prepayment. 

“One of the loans was on a year-long ARM period without penalty so we had time.  The other (Eagle Hollow) was in the three-month period where the 1% penalty could only be waived by a DUS Lender.  We waived that penalty and locked them together and closed in less than 30 days to avoid double-interest and ensure no prepayment penalties were required.”

The Mortgage Banking Group at Hunt Mortgage Group provides mortgage financing for conventional multifamily properties throughout the United States. Hunt Mortgage Group is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider, bridge and CMBS lender, and source for other forms of alternative capital.

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About Hunt Mortgage Group

Hunt Mortgage Group, a real estate finance company, provides financing and investing for conventional and affordable multifamily housing throughout the United States. Hunt Mortgage Group is organized around two business units: Mortgage Banking and Affordable Housing Debt. Under the Mortgage Banking and Affordable Housing Debt businesses, Hunt Mortgage Group partners with developers, owners, and investors to provide them with capital to develop, acquire or redevelop their real estate assets. Hunt Mortgage Groupʼs core debt products consist of Fannie Mae, Freddie Mac, or HUD/FHA financing. In addition, through several strategic alliances, Hunt Mortgage Group offers various CMBS executions for multifamily and other commercial properties, bridge loans and select joint venture equity products. Today the firmʼs lending platform manages and services more than $10.4 billion in loans, of which affordable housing makes up $916 million. Founded in 1972 as Centerline Capital Group, Hunt Mortgage Group was formed in 2014 upon acquisition by the Hunt Companies.  Headquartered in New York City, Hunt Mortgage Group has 145 employees in 14 locations throughout the United States. To learn more about Hunt Mortgage Group, visit www.huntmortgagegroup.com.

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08/04/2014 - 18:07

Source

Hunt Mortgage Group

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