Projection of Steady Growth Forecast for Multifamily Rents

The borrower is investing $6.67 million in a rehab program for Villages of Copperfield.

HOUSTON— Located at 8750 Point Park Dr., Villages of Copperfield is comprised of 58 two- and three-story residential buildings, plus a single-story leasing office and maintenance storage shop with a total of 964 units. Hunt Mortgage Group provided a Fannie Mae loan in the amount of $65 million to finance the acquisition of the multifamily property. The borrower is Village at Copperfield LLC , a Delaware limited partnership, backed by key principal Joseph Lubeck , a repeat borrower who will co-manage the partnership with ESJ Capital Partners LLC .   The loan is another deal structure with the Fannie Mae mod-rehab program including a 10-year term, with four years of interest-only payments, followed by 30-year amortization period on an 80% loan to renovation cost. The borrower plans to invest in capital improvements on site to complete an extensive rehab within the next 15 months. Property average occupancy during the past year is 94%, with current occupancy at 91%. Deborah Proctor , vice president at Hunt Mortgage Group, tells GlobeSt.com: “Villages of Copperfield is located in a submarket with a low 4.1% vacancy overall. Rents projected are to keep growing at an average annual rate of 2.55% through 2019 and the borrower is investing $6.67 million in a moderate rehab program in order to solidify and strengthen the property’s competitive position. We were pleased to participate in this deal as it offers much needed work-force housing in the NW Houston area.” Built in 1983 as three separate complexes ( Hampton Hills, Chesapeake and Waterford ), Villages of Copperfield now operate as a single property with three contiguous parcels. The property is comprised of one- and two-bedroom units. Property amenities include three outdoor swimming pools, a tennis court, leasing office with fitness center and five laundry facilities. “Earlier this year, we financed Mr. Lubeck’s $25.4 million acquisition of Fountains of Katy, a multifamily property located in Katy, Texas with a similar structure, but with floating rate debt instead of fixed,” explained John Beam , managing director at Hunt Mortgage Group.