Hunt Mortgage Group provided a bridge loan in the amount of $10.25 million for the acquisition of a multifamily housing property located in Greensboro, North Carolina.
Serenity Apartments at 199 Wind Road and is a 276-unit garden-style multifamily complex. The property was built in 1985 and is comprised of 12 three-story apartment buildings and a leasing office.
The first mortgage bridge loan was structured for borrower HCA Villages Greensboro, LLC. The proposed loan amount is inclusive of a $1.2 capital improvement reserve that will go toward property renovations and improvements.
The loan is structured as a 36-month floating rate interest-only loan, with no options to extend the loan term. Following the renovation, the property will be re-branded to Summit Village Apartments.
“The borrowers are seasoned commercial real estate and multifamily investors who have focused on acquisitions and apartment management throughout the Southeast for a number of years,” noted RJ Guttroff, Managing Director at Hunt Mortgage Group. “Working together as partners, they currently serve as asset/property managers for more than 2,000 multifamily units handling every aspect of management.”
The capital improvement plans will include interior renovations of 125 units, including replacing countertops and cabinets, flooring upgrades, installation of new lighting and bathroom fixtures, and full kitchen appliance upgrades. Exterior improvements will include leasing office upgrades, amenity upgrades, landscaping/site improvements, asphalt repairs, signage upgrades, common area improvements, tennis court repairs, exterior painting, and new cement board siding on all buildings.
Serenity Apartments is located approximately five miles north of downtown Greensboro and is part of the Greensboro-High Point metropolitan service area. The unit mix features 12 studios, 120 one-bedrooms, and 144 two-bedroom units. “Serenity Apartments is currently 94% occupied and is well located in a strong market for quality multifamily rental properties,” added Guttroff. “We were pleased to deliver acquisition financing for this solid sponsor.”