Hunt Mortgage Group Refinances a Multifamily Property in Denver
Denver, CO – Hunt Mortgage Group recently announced that it provided a $5 million Freddie Mac Small Balance loan to refinance a multifamily property located in Denver, Colorado. Hunt Mortgage Group was selected as one of only three financial institutions to pilot the Small Balance Loan program when it was first launched.
The property, 831 & 861 Cherry Street, is a 38-unit property that was built in 1948 and is contained in two, three-story buildings situated on 0.83 acres of land. The transaction is a 7 year fixed +13 year Hybrid ARM loan with a 30-year amortization period and a stepdown prepayment option. The sponsorship, a Colorado limited liability company, is an affiliate of The Emporia Company, LLC whose managing partner is Mark T Bailey.
“The sponsor is a new Freddie Mac and Hunt Mortgage Group borrower and has a substantial amount of experience in the real estate industry,” commented Penny Newton, Vice President in the Small Loan Group at Hunt Mortgage Group. “Emporia is well-versed in all aspects of real estate operations, including development, investing and managing commercial properties.”
The borrower purchased the property in 2013 and executed a complete rehab and repositioning in 2014/2015. Freddie Mac provided substantial cash out for the reimbursement of their equity and some market appreciation. The property was vacated, rehabbed and re-tenanted with a current occupancy of 98%+.
“The property is located in Denver, considered to be a top market under the Freddie Mac Small Balance Loan program,” added Newton. “The real estate fundamentals with its central Denver location and experienced sponsor are very strong. We were pleased to originate this loan on behalf of Freddie Mac’s Small Balance Loan program and provide the borrower with the right financing for their project.”
Photo courtesy of Hunt Mortgage Group