Hunt Mortgage Lends $187M on Affordable and Student Housing Portfolio
By Cathy Cunningham March 7, 2018 8:45 am
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Hunt Mortgage Group has provided $187 million in financing to Atlantic Housing Foundation (AHF) for a portfolio of affordable and student housing properties in Texas, Florida, and South Carolina, Commercial Observer has learned.
The package includes $102 million in variable-rate taxable financing from Freddie Mac, $83 million in fixed-rate financing through Fannie Mae’s tax-exempt bond execution—which uses a mortgage-backed security as collateral for a tax exempt bond issuance—and $2 million through a variable-rate execution from Hunt Mortgage. This was the first time the execution was used to finance student housing, according to the lender. Hunt Mortgage also provided additional project financing for the remaining property.
The portfolio comprises more than 3,500 units of affordable and student housing across 16 properties.
Dallas, Texas-based AHF promotes and preserves affordable housing for low- and moderate-income families, and currently owns and operates 7,600 apartment units in 30 apartment communities. The non-profit organization intends to reinvest over $14 million of this financing’s proceeds back into the properties in order to make green and other improvements.
“AHF is a seasoned multifamily group that has owned and developed affordable and student housing properties since 1999,” Paul Weissman, a senior managing director at Hunt Mortgage Group, said in prepared remarks. “In addition to providing high-quality affordable housing to low and moderate income families, AHF has awarded nearly $5 million in collegiate scholarships to working families since 2006 and provided 15,000 hours of social service programming in 2017 alone. Our organizations’ mission alignment makes Hunt Mortgage Group and AHF a perfect partnership.”
Michael Nguyen AHF’s president and CEO commented: “It was a pleasure working with Paul and his team at Hunt Mortgage Group. Their intimate knowledge of the Fannie Mae and Freddie Mac processes helped pave the way for a successful, albeit very complicated transaction. Their experience and capabilities showed as they work to anticipate issues and helped closed the financing under a very tight timeline.”
