Hunt Real Estate Capital provided two Freddie Mac small balance loans totaling $7.42 million to finance the acquisition of two multifamily portfolios located in the Bronzeville neighborhood of Chicago.
The hybrid loans are structured as 20-year fixed-to-floating rate loans with three years interest only, followed by a 30-year amortization schedule. Both proposed transactions will have a Tenant in Common structure with both parties owning 50 percent of each property. Jeffrey and Susan Drawdy are the transaction guarantors.
“The borrower is a quality, seasoned sponsor that has closed seven transactions with both Hunt Real Estate Capital and Freddie Mac, and all of their properties are performing well,” noted Owen Breheny, Managing Director at Hunt Real Estate Capital. “We were pleased to secure the financing for the acquisition of these two properties and to provide quality multifamily options to residents of the Bronzeville neighborhood of Chicago.”
In the Bronzeville North Portfolio, Hunt Real Estate Capital provided a $4.18 million loan to finance the acquisition of 4340, 4343, 4501 and 4846 S. Michigan Avenue, and 4915 and 4919 S. Calumet Avenue. The multi-property, walk-up portfolio is 94 percent physically occupied and totals 53 residential units built from 1896 to 1911. Property amenities include parking and in-unit washers and dryers.
Located at 5726, 5730, and 5901 S. Prairie Avenue, 5216 S. Michigan Avenue and 6152 S. Evans Avenue, the Bronzeville South Portfolio is a multi-property, walk-up portfolio totaling 37 residential units. The properties were built from 1895 to 2014 and are 92 percent physically occupied and amenities include parking and in-unit washers and dryers. Hunt Real Estate Capital provided a $3.24 million loan to secure this property.