NEW YORK, March 07, 2017 (GLOBE NEWSWIRE) -- Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it has arranged a Freddie Mac Small Balance Loan in the amount of $4.8 million to enable ROCO Real Estate to acquire a multifamily property located in Fort Wayne, Indiana. ROCO is a privately-owned real estate investment firm located in Bloomfield Hills, Michigan.
“ROCO is a young company specializing in the acquisition and development of much needed workforce housing in various markets in the Midwest,” noted Josh Messier, Director, Hunt Mortgage Group. “The Freddie Mac Small Balance Program offers interest-only which enables the Sponsors to maximize property cash flow and reinvest in capital projects at the property. Furthermore, the hybrid term structure is attractive as it reduces refinance risk. As ROCO is a repeat Small Balance Loan client of Freddie Mac and Hunt Mortgage Group customer, we were able to provide a seamless execution and close quickly.”
The property, Winchester Woods, is a 168-unit garden and townhome style apartment complex comprised of eight, two-story apartment buildings, a one-story leasing office and a maintenance building.
“Once again, working with Hunt Mortgage and Freddie Mac proved to be a seamless process,” said Kevin Roach, Director of Debt Financing for ROCO. “Our close relationship with the two parties allowed us to focus our efforts on the acquisition process and developing and enacting our business plan with the property, since we were certain the financing would be there when we got to the closing table. We’re looking forward to the next deals with them.”
The loan is a 20-year Hybrid structure consisting of a 10-year fixed rate period followed by 10 years of adjustable rate. The loan has three years of interest-only followed by 30 years of amortization.
Property improvements also include: a pool, walkways, landscaping, and parking areas as well as 72 carport/garage spaces. The apartment buildings were constructed in 1968 and have been used for residential purposes since their construction. The property is 96% occupied.
Winchester Woods is located in the southern portion of the city of Fort Wayne, approximately 5.5 miles south of the Fort Wayne central business district. There are a variety of land uses in the neighborhood including single-family homes and multi-family apartments, local parks, public golf courses with close proximity to the Fort Wayne International Airport.
The Freddie Mac revolving credit facility offers an efficient, flexible and certain execution for active multifamily sponsors. It provides a secured line of credit from which borrowers can move assets in and out of the facility at their discretion. The initial commitment of typically $100 million, or more, may be expanded or contracted at the borrower’s discretion. The facility term is five years and may have up to two, one-year floating-rate extension options. Borrowers for this product are existing Freddie Mac customers with a regional and/or national presence.
About Hunt Mortgage Group
Hunt Mortgage Group, a wholly owned subsidiary of Hunt Companies, Inc., is a leader in financing commercial real estate throughout the United States. The Company finances all types of commercial real estate: multifamily properties (including small balance), affordable housing, office, retail, manufactured housing, healthcare/senior living, industrial, and self-storage facilities. It offers Fannie Mae, Freddie Mac, HUD/FHA in addition to its own Proprietary loan products. Since inception, the Company has structured more than $21 billion of loans and today maintains a servicing portfolio of more than $12 billion. Headquartered in New York City, Hunt Mortgage Group has 189 professionals in 20 locations throughout the United States. To learn more, visit www.huntmortgagegroup.com.
Source:Hunt Mortgage Group