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