NEW YORK, Sept. 16, 2020 /PRNewswire/ -- Hunt Real
Estate Capital, a division of ORIX Real Estate Capital, has
provided a $43 million Fannie Mae
DUS® Conventional Multifamily loan to refinance Ironclad
Apartments, a 172-unit mid-rise apartment community in Minneapolis, Minnesota that debuted in
2019.
The loan refinances construction debt from a bank the borrower
utilized to build Ironclad and a neighboring hotel starting in
2017.
"We were proud to partner with the sponsor, as well as
Rohit Narayanan at Lighthouse
Advisors, to complete this Fannie Mae refinance," said Nicholas Diamond, vice president at Hunt. "This
was the sponsor's first agency deal and first multifamily project
in over two decades, and we were humbled to be selected as their
partner in this undertaking. With the new structure in place,
Ironclad is well-positioned to reap the benefits of agency
financing for years to come."
In February of this year, the transaction was originally
expected to proceed as a Fannie Mae Multifamily Near-Stabilization
execution. In the wake of the COVID-19 crisis and subsequent market
disruption, Fannie suspended the program, yet was able to work with
Hunt to quickly pivot to the conventional option.
The $43 million loan features a
low, fixed interest rate and 10-year term with three years of
interest only followed by a 30-year amortization schedule. In
addition to paying off construction debt with low-cost capital at a
fixed interest rate, the closing provides for substantial cash-out
proceeds to the sponsors of approximately $2.1 million.
Ironclad Apartments is a "class A" property with high-quality
amenities, as well as two commercial units. Due to the high-quality
nature of the asset and its prime location, Ironclad was able to
successfully lease up and stabilize during the summer months
despite challenges caused by the pandemic.
About Hunt Real Estate Capital
Hunt Real Estate
Capital (HREC), a division of ORIX Real Estate Capital, is a
leader in financing multifamily housing and commercial real estate.
HREC is a source of debt for multifamily, affordable housing,
manufactured housing, healthcare/senior living, retail, office,
industrial, self-storage, and mixed-use assets through Fannie Mae,
Freddie Mac, FHA, its own balance sheet and managed public and
private investment vehicles. To learn more,
visit www.huntrealestatecapital.com.
MEDIA CONTACT
Michael
Ratliff
Hunt Real Estate Capital
212-588-2163
michael.ratliff@huntcompanies.com
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SOURCE Hunt Real Estate Capital