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Strong Market Dynamics Provide Stability for Freddie Loan

PHOENIX—Hunt Mortgage Group provided a $31.8 million Freddie Mac loan facility to finance the acquisition of Arboretum at South Mountain to borrower KB Arboretum Holding LLC.

By Lisa Brown | lisabrown | | Updated on June 15, 2016
Arboretum at South Mountain Arboretum at South Mountain receives acquisition funding.
PHOENIX— Arboretum at South Mountain is a 312-unit garden-style apartment complex that is situated on a 12.51-acre site located at 15251 South 50th St. The property consists of 13 three-story residential buildings and a single-story leasing office/clubhouse. Hunt Mortgage Group provided a $31.8 million Freddie Mac loan facility to finance the acquisition of Arboretum at South Mountain. The borrower is KB Arboretum Holding LLC , a newly formed Delaware limited liability company. Peter Clasquin , managing director at Hunt Mortgage Group, tells GlobeSt.com: “This loan program is a perfect fit for this client.  It enables him to lock in a low fixed rate and recapitalize his renovation costs through a supplemental mortgage.” The loan term is 10 years with amortization based on a 30-year schedule with five-year interest only. Yield maintenance will apply during the first 9.5 years. “The borrower is a seasoned commercial real estate and multifamily executive, having owned more than 2,500 apartment units in his 40 plus-year real estate investment career,” said Clasquin. “Since the 1970s, he has developed, acquired and managed apartment complexes in Los Angeles, Riverside, Orange, San Bernardino (CA) and San Diego counties.  He is known for actively maintaining his properties, continuously reinvesting in property upgrades, keeping regular repair and maintenance costs down.” All units include a private patio or balcony area. Common area amenities include a clubhouse with resident lounge and business center, fitness facility with cardio and weight training equipment, swimming pool, spa, gas barbecue grills and sand volleyball court. “The borrower has a very specific business plan for the Phoenix market and this is his third purchase in the area over the past year,” added Clasquin. “We were pleased to work with him, arranging the finance he needed to acquire this quality property in a strong market.”

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