New York, NY — September 21, 2022 — Lument announced the closing of a $34.7 million Fannie Mae conventional loan to facilitate the acquisition of Wexford Townhomes, a garden-style community in Duncanville, Texas, in southwest Dallas county. Michael Curland led the transaction for Lument.
“To help the sponsor achieve all of its objectives, we underwrote the transaction utilizing Fannie Mae’s Green Rewards program, which allowed us to provide a 20 basis point interest rate reduction with minimal repairs required,” said Curland. “The substantial rate reduction, coupled with a rigorous tax analysis, allowed us to increase the loan amount by over $1.6 million from application to closing, further reducing the equity burden on the borrower and solidifying an extremely favorable outcome.”
The loan features a low, fixed interest rate, 10-year term, five years of which are interest only (IO), and 30-year amortization.
“Structuring the loan with five years of IO payments and a maximum loan-to-value of 75 percent will allow the sponsor to utilize excess cash flow to improve the property, with the goal of ultimately capitalizing on the rent growth with a refinance or supplemental loan in the future,” Curland added.
Built in 1984 and last renovated in 2016, Wexford Townhomes consists of 122 units across 17 buildings on nine acres. All 122 of the units include an attached one-car garage and a private one-car driveway. The community enjoys a notably low turnover rate and typically has a waiting list for interested renters.
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.