Hartford, CT Lument has completed the closing of a $26 million Fannie Mae DUS conventional multifamily loan to refinance Garden Hill Apartments, a 591-unit mid-rise portfolio. Josh Messier, managing director in Lument’s New York office, led the transaction.
Originally constructed in 1963, Garden Hill Apartments is a 20-property portfolio with 20 separate buildings and a combined eight acres. The portfolio was purchased by the current sponsor in 2012 during a time of distress, as occupancy averaged 65%. The sponsor steadily improved the community over the years, resulting in a current occupancy rate of 98%. To further enhance the portfolio and provide funds for additional acquisition opportunities, the sponsor sought to refinance existing debt while also obtaining cash-out proceeds.
“The experienced sponsors of Garden Hill Apartments are repeat Fannie Mae clients and are well-versed in the ample benefits of an agency execution,” said Messier. “In addition to refinancing existing debt at a low, fixed rate, the successful closing allows the sponsor to continue to reinvest in Garden Hill with strategic unit upgrades while also investing in additional multifamily housing opportunities via substantial cash-out proceeds.”
The Fannie Mae loan features a 10-year term, five years of which are interest only, and 30-year amortization schedule.
Garden Hill Apartments is 100% mission-driven with all units affordable to renters at 60% of area median income (AMI) and 88% of units affordable to renters at 50% AMI.
“The properties provide important, high-quality rental housing to a large workforce community in the Hartford area,” Messier said. “We were pleased to provide this execution for a strong, local sponsor through David Betesh of Rockwell Mortgage Capital Advisors.”