Outside the Region: Hunt Mortgage finances multifamily acquisition

Winston-Salem, NC Hunt Mortgage Group provided a $15.9 million Fannie Mae conventional mortgage to finance the acquisition of an affordable multifamily property. The Fields Parkside is a 433-unit, garden style apartment complex located at 5010 Split Rail Cir. 

The borrower is Interurban Emerald Bay, LLP, backed by key principal William Doogan.  The property was acquired from Elite Street Capital.

The property was built in two phases in 1984 and 1990. The property is located five miles from downtown and is comprised of 23 three-story apartment buildings. 

The Fields Parkside is 100% affordable to 80% of the median income and 19.4% affordable to the 60% level.

“The Fields Parkside has been well maintained by the previous owner, and was performing well but the seller did not have any other properties in Winston-Salem so they decided to put this one on the market,” said Bryan Cullen, managing director at Hunt Mortgage Group.

“We executed a rate lock under the newly enhanced Streamlined Early Rate Lock (SERL) Program before receiving any third party reports or much of the required documentation,” said Cullen. “We also locked with Green pricing which was conditional upon receipt of a report, and the agreement to complete, utility conservation upgrades that would lower the utility expenses by 25%.” 

The upgrades in this case are solely focused on water conservation but often will include LED lighting installation. 

Over the past five years the property received $1.5 million in renovations including new siding, paint, double-paned windows and a remodeled clubhouse. In addition, 180 units have been renovated upon tenant turnover and the new owner plans to continue renovations as units are re-tenanted.

Property amenities include two community pools, a tennis court, and combination leasing office/clubhouse. The property also offers 689 open parking spaces.

Doogan has been investing in multifamily for over 30 years and owns seven properties in North Carolina. Doogan said, “I have worked with Hunt (and legacy companies) for over 19 years. This was my first early rate lock on an acquisition under the DUS Program and my first Green deal and everything went incredibly smooth.”

The Fields Parkside is located in the Stonewall/Salemtown submarket north of downtown, three miles north of Wake-Forest University, in a primarily single family residential neighborhood.