GRESHAM, OR—The Groves Apartments has received a $16.4 million Freddie Mac refinance loan provided by Hunt Mortgage Group. The borrower is NBP Capital LLC, a Delaware limited liability company, backed by Lauren Noecker and Spencer Noecker.
The Groves Apartments is located approximately 18 miles east of downtown Portland at 3500 NE 17th St. The garden-style multifamily complex is comprised of 13 buildings including 12 two-story residential buildings with 200 units, plus one two-story building with the leasing office on the first floor and one residential unit on the second floor. The property was built in 1971 and covers more than 9.15 acres.
Bryan Cullen, managing director with Hunt Mortgage Group, tells GlobeSt.com: “This is the first Freddie Mac deal we have done with NBP after doing a number of Fannie Mae DUS transactions. One of the challenges was the property was in lease up in the spring and there was a CMBS maturity that required payoff on either July 13 or August 11. The rent collection target was reached in June and supported with preliminary July numbers so we were able to rate and close at the earlier date.”
The property was purchased in 2012 and NBP has spent more than $2.8 million in capital repairs and improvements including new windows, exterior siding, restoration of paved areas, landscaping and construction of a 43 single-car garage, as well as partial or full renovation of 37 units. Another $1 million of improvements is underway to include a new clubhouse.
“We were pleased with our first Freddie Mac experience. Hunt Mortgage Group was able to hold the spread and fund a loan at 80% of value on the first day possible,” says Lauren Noecker.
Project amenities include a swimming pool, a leasing office, and off-street parking for 368 cars including 43 single-car garages and 325 open spaces. Work is currently underway to renovate the leasing building, and to build a clubhouse and gym that will have all new fitness equipment. The work is scheduled to be completed in September 2015. Surrounding properties in the area are complimentary and include single-family homes, condominiums and Mount Hood Community College.
Brad Willson, vice president capital markets, with Marcus & Millichap Capital Corporation was the broker on the transaction. He added, “We are currently working with Hunt Mortgage Group and NBP on a number of Freddie Mac small balance loans now that we've broken the ice.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
