Occupancy Nearly Full After Initial Updates

A $15 million Fannie Mae loan was provided to refinance a bridge loan on Magnolia Creek Apartments.

DALLAS— Magnolia Creek Apartments (formerly Surrey Row Apartments ) is comprised of 28 three-story residential buildings on 14.4 acres of land. Located at 7272 Marvin D. Love Freeway, the property has 436 units and was built in 1988. The apartments have five available floor plans, including an efficiency unit, along with one- bedroom, two- bedroom and three-bedroom units. Hunt Mortgage Group recently provided a $15 million Fannie Mae loan facility to refinance a bridge loan on the multifamily property. Hunt Mortgage Group initially provided the bridge financing to enable the acquisition and rehabilitation of the property for the borrower in early 2015. The borrower is sponsored by Iliad Realty Group which was represented by Sal Torre with Estreich & Company of New York. The new loan terms include an 84-month term (7/6 ARM) and 30-year amortization period. “Iliad is new to Fannie Mae, but is a repeat Hunt Mortgage Group client, as we provided the bridge loan needed to secure this property,” said Bryan Cullen , managing director with Hunt Mortgage Group. “Prior to acquisition, the previous owner invested $1.3 million in capital improvements. The borrower added to this $1.1 million of capital funds to make additional repairs, including landscaping, security upgrades, foundation repairs, other exterior repairs, and the repainting and renovation of 60 units. Property performance has improved under the new ownership with occupancy growing from 80% to 90%.” Amenities include a laundry facility, a leasing office with lounge and fitness center, a swimming pool and two playgrounds. Parking is furnished via 644 spaces. Commenting on the deal, Torre said, “We worked with Hunt Mortgage Group on the bridge loan and the sponsor was pleased with the service and execution so we were comfortable continuing our relationship with the permanent.  We closed as scheduled with the terms in the application.” The property is managed by Walker Holder Residential Inc. , a local professional management company that also managed the recent property renovations. Cullen tells GlobeSt.com: “I was proud of how our servicing people handled this during the bridge period. Processing construction draws while being flexible and responsive. This gave Hunt the advantage on the permanent.”