Charlestown, MA Hunt Real Estate Capital provided a Fannie Mae conventional multifamily loan in the amount of $9.9 million to finance the acquisition of a multifamily property.
Navy Yard Apartments is a 47-unit, garden-style apartment community that was built in 1900. The property is comprised of two studios, 30 one-bedroom units, and 15 two-bedroom units.
The loan term is 10-years with full term interest-only payments. Yield maintenance will apply during the first 114 months with a 1% prepayment thereafter with the last 90 days open. The borrower is Serone Navy Yard, LLC, a newly formed, single asset entity.
“Navy Yard Apartments is located in Charlestown’s historic Navy Yard and offers residents a quiet neighborhood setting with plenty of walkable area amenities including trendy restaurants, such as Pier 6, Navy Yard Bistro, Brewer’s Fork, and the famous Warren Tavern,” said Charlie Cole, director at Hunt Real Estate Capital.
The city features landscaped parks and historical sites highlighted by The Bunker Hill Monument, Freedom Trail, and USS Constitution. Navy Yard is also one mile from the Bunker Hill Mall, which features a variety of area conveniences including Whole Foods Market, CVS, Dunkin’, and Ace Hardware.
“We are excited about the Navy Yards acquisition. This was our second deal in Boston – one of the premier multifamily markets in the U.S. – and the property is located in the heart of the Boston Navy Yards, a waterfront neighborhood administered by the National Park Service,” noted Christopher Thomson, Officer of Serone Asset Management U.S. and Managing Principal of Multifamily Acquisition Advisors. “It was a pleasure working with Charlie Cole and the team at Hunt Real Estate Capital for the Fannie Mae financing. There were several moving parts, including the extension of a land lease and a 1031 exchange, which made the certainty of execution imperative. We look forward to working with the natural attributes of this unique asset to optimize its value.”
“The property was built in 1900 but was renovated in 2017 and has been well maintained by the previous owner,” added Cole. “The borrower plans to invest just over $350,000 in capital improvements, which will include USB ports, custom fixtures, backsplash, green improvements, and Wi-Fi, which will all be implemented over the next 12 months.”