— Total funding equals $12 million —
Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it provided a Fannie Mae loan in the amount of $12 million to refinance an affordable multifamily property located in Dallas, Texas.
Cornerstone Apartments is a 240-unit garden-style multifamily apartment comprised of sixteen two- and three-story buildings located at 2606 Community Drive, 9709 and 9720 Starlight Road. The property was built in three phases in 1968, 1972 and 1976 and two of the phases were re-developed in 1992 and 1995 through the Low-Income Housing Tax Credit Program. The third phase is market-rate without affordability restrictions.
“The new loan qualifies as an Affordable Preservation Transaction eligible for MAH financing because 202 of the total 240 units are rent and income restricted with more than three years remaining through the property’s two LIHTC Regulatory Agreements with the Texas Department of Housing and Community Affairs,” explained Colin Cross, Director in the Dallas office at Hunt Mortgage Group.
The Borrower is JAG CA Re-Development, LLC, a Texas Limited Liability Company backed by Key Principal James E. Graham, Jr. The loan term is 12-years with amortization based on a 30-year schedule. Yield maintenance will apply during for the first 11.5 years. Churchill Capital Company of Dallas, TX served as the mortgage banker for the transaction.
“Since acquisition, Mr. Graham initiated a significant capital improvement program, investing more than $2 million to upgrade the property while also maintaining its affordability to residents,” noted Duke Stone, President and Co-Founder of Churchill Capital Company. “Improvements included replacing the formerly flat roofs with pitched asphalt-shingle roofs, upgrading the HVAC equipment and flooring, and other interior and exterior upgrades. As usual Jim did a great job with this deal.”
“Mr. Graham has more than fifteen years of experience acquiring, renovating and managing multifamily apartment communities in the Dallas MSA, and he has improved occupancy at Cornerstone from 70% upon acquisition to over 90% today,” added Cross. “We were thrilled to partner with him and the team from Churchill again to provide this new financing.”
Property amenities include an on-site management/leasing office, four laundry rooms, a swimming pool and playground.