Lument announced the closing of a conventional Freddie Mac multi-family loan to refinance Horizon Hill, a 273-unit garden-style apartment complex in San Antonio, Texas. John Sloot, vice president of Lument’s Dallas office, led the transaction.
Originally built in 1982, Horizon Hill was purchased by sponsor REEP Equity in June 2018 with a short-term bridging loan. The occupancy rate was below stabilization at the time of acquisition. REEP Equity, in conjunction with its in-house property management company REEP Management, quickly launched a plan to increase occupancy and rehabilitate the property. Interior and exterior renovations were completed in December 2019 and the occupancy rate stabilized quickly.
The Freddie Mac loan is structured as an adjustable rate mortgage (ARM) with a term of 10 years, four years of interest only, and 30 years of amortization. In addition to refinancing existing debt, closing provides substantial disbursement proceeds for the borrower.
A loyal customer of Freddie Mac with extensive multi-family experience, REEP Equity has bought, sold and managed over 2,000 units.