New York, NY — June 17, 2022 — Lument announced today the closing of five loans totaling $16.1 million to refinance four multifamily communities in Texas. The loans were closed via the Freddie Mac Small Balance Loan program and provide funding for 312 total units. Owen Breheny, managing director at Lument, led the transaction for Lument.
“With this portfolio refinance, we were able to help the borrower refinance four properties with a low, fixed interest rate that included an average of two to three years of interest only per loan,” said Breheny. “Further, the closings provide substantial cash-out proceeds, which will be used for property improvements and additional multifamily acquisition opportunities.”
The sponsor was Trans Pacific Construction, Inc., a repeat Lument client with two decades of experience managing multifamily communities in California and Texas. Lument’s correspondent broker on the transaction was Doug Solether of Commercial Real Estate Finance Company of America (CREFCOA).
“We have worked with Doug Solether at CREFCOA and Owen Breheny and the Lument team for many years, and they are a professional, serious, and capable group,” said Mohammad Shirloo, president and CEO of Trans Pacific Construction. “This round of portfolio refinancing was the most challenging, given the abrupt change in the lending market, but Lument delivered on their commitments made at the outset and met every challenge. We look forward to working with this capable team on future transactions.”
The communities were all acquired over 15 years ago and have undergone significant improvements post-acquisition. Four of the transactions were existing loans with Lument and the fifth was local bank debt that was converted from recourse to non-recourse.
Three of the communities are located in the city of Amarillo: Bel-Aire and Fairway Apartments, 38 units in four buildings; Summerwood Terrace Apartments, 22 units in one building; and Greenbriar Terrace Apartments, 68 units in five buildings. Lions Court Apartments, which contains 184 units in 22 buildings, is located in Wichita Falls.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, investment sales, investment banking, and investment management solutions. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.