New York, NY – July 30, 2015 – (RealEstateRama) — Hunt Mortgage Group, a commercial real estate lender, announced today that it has provided bridge financing in the amount of $10.5 million to enable the acquisition and rehabilitation of Surrey Row Apartments, a multifamily property located in Dallas, Texas. The loan represents 80% of costs.
Surrey Road Apartments is comprised of 28 three-story residential buildings, plus one single-story leasing office building situated on 14.4 acres of land. Located at 7272 Marvin D. Love Freeway, the property houses 436 units and was built in 1988.
The loan terms include a 24-month term, plus 12 month extension option, with interest only payments for the full term. The borrower is IRG MDL LLC, a Delaware limited partnership, backed by key principal, Elliott Aronson, who was represented by Sal Torre of Estreich & Company out of New York.
Commenting on the deal, Torre said, “Hunt Mortgage Group launched their Bridge Loan program last year. I was pleased to recommend them and this new financing option based on my previous experiences with Bryan Cullen and the entire Hunt Mortgage Group team.”
“While this was our first deal with Mr. Aronson, he is an experienced commercial real estate and multifamily investor,” said Bryan Cullen, Managing Director with Hunt Mortgage Group. “This included recent experience in successful turnarounds of C class apartment deals.”
Over the past 3 years, the seller had invested $1.33 million in capital improvements, including various systems repairs, unit turnovers, site paving repairs, landscaping improvements and exterior repainting. The new owner has allocated $906,000 of capital funds to make additional landscaping upgrades, security upgrades, foundation repair, sealant renewal, exterior repair and repainting, and the renovation of 60 units. Hunt was able to structure the repair budget into the eligible acquisition costs for the purposes of sizing the loan.
Surrey Road Apartments hosts four floor plans, including an efficiency unit, one-bedroom, two-bedroom and three-bedroom units. Parking is furnished via 644 spaces. Project amenities include a common laundry facility, a leasing office with lounge and fitness center, outdoor swimming pool and two playgrounds.