NEW YORK, June 23, 2021 / PRNewswire / – Lument provided USD 15.5 million USA Fannie mae dus® Affordable Multi-Family Housing (MAH) loan to refinance Redbird Trails Apartments, an affordable multi-family housing development with 252 apartments in Dallas, tex… Chad Musgrove, vice president, led the deal for Lument.
Built in 1985, Redbird Trails Apartments consists of 21 two- and three-story apartment buildings with one and two bedroom apartments. The community is owned and operated by the current sponsor since 1992. Significant capital improvements overall USD 463,000 have been produced in recent years. Approximately 20% of apartments are reserved for tenants with incomes below 50% of the local average income (AMI) and 80% of apartments are reserved for tenants with incomes below 60% AMI.
To further improve the community and ensure its long-term success, the sponsor requested Fannie Mae refinancing, which would allow the proceeds to be used both for renovations and for investing in the acquisition of additional multi-unit properties.
“Fannie Mae’s affordable multi-family loan was the optimal solution,” Musgrove said. “We not only set a lower interest rate, but we were able to generate significant revenue that the sponsor can use to further improve the property and their business.”
In the process of obtaining a loan Dallas the area was hit by a severe winter storm that caused significant damage to the population, including flooding and fire damage. Musgrove, working with Lument Asset Management, quickly responded to helping the sponsor establish an escrow fund for immediate renovation and other tenant needs.
“Despite the disruptions caused by the winter storm, we were still able to close the loan on time and help the sponsor achieve all of their goals,” added Musgrove.
The Fannie Mae loan has a 12-year maturity, a 30-year maturity period and a low fixed interest rate. In addition, it provides for approximately USD 600,000 for planned capital investments and repairs. The broker for the deal was Gail Bulls Dixon Dixon Link Capital, a woman-owned mortgage brokerage firm located in Florida…
ORIX Real Estate Capital Holdings, LLC, d / b / a Lument, is a subsidiary of ORIX Corporation USA… Lument is a national leader in commercial real estate finance. Lument is a combined organization of seasoned industry experts from Hunt Real Estate Capital, Lancaster Pollard and RED Capital Group, and offers a full suite of capital solutions tailored to investors in affordable apartment buildings, senior housing and medical real estate. Lument – Fannie Mae DUS®, Freddie Mac Optigo®, FHA and USDA lender. In addition, Lument offers a suite of proprietary solutions for commercial lending, investment banking and investment management. Securities, investment banking and advisory services are provided through OREC Securities, LLC, d / b / a Lument Securities, a member of FINRA / SIPC. Investment consulting services are provided by OREC Investment Management LLC, d / b / a Lument Investment Management. OREC Investment Management is registered as an investment advisor with the US Securities and Exchange Commission. For more information visit www.lument.com…
Michael Ratliff | Marketing director
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