Outside the Region: Hunt Mortgage Group provides 5.5 million Freddie Mac Small Balance loan for multifamily acquisition

Philadelphia, PA Hunt Mortgage Group provided a $5.5 million Freddie Mac Small Balance loan to finance the acquisition of an affordable multifamily property. 

Reach Lofts Apartments is located at 1701-1707 Tulip St., and consists of a five-story apartment building containing a total of 30 residential units.

The borrower is MM Equity Partners Philly LLC, a single-asset Limited Liability Co. formed in Delaware, managed by Elie Mamiye. The transaction is a seven-year fixed rate loan with an overall loan term of 84 months, with the first two years interest-only followed by seven years of 30-years amortization and a yield maintenance prepayment schedule.

“Reach Loft Apartments was built in 1900 and was originally a baseball making factory,” said Harris Heller, managing director at Hunt. “The seller performed a gut renovation in 2015 repurposing the property into a multifamily property at a renovation cost of approximately $3.6 million.”

The unit mix consists of 21 one-bedroom, one-bathroom apartments; seven two-bedroom, one-bathroom units; and two two-bedroom, two-bathroom apartments. Property amenities include in–unit washer and dryers, bike storage, and a furnished roof deck that is accessible to the tenants.

“Reach Loft Apartments is located in the Fishtown section of the city of Philadelphia, approximately 2 miles north of the city’s central business district,” said Heller. “The area has seen a renaissance in the past couple of years and the outlook for the neighborhood is positive. We were pleased to provide the financing to secure the acquisition of this unique property.”