NEW YORK, NY — Lument has announced the closing of a Freddie Mac conventional multifamily loan to refinance Horizon Hill, a 273-unit garden-style apartment complex in San Antonio, Texas. John Sloot, vice president in Lument’s Dallas office, led the transaction.

Originally constructed in 1982, Horizon Hill was purchased by the sponsor, REEP Equity, in June 2018 with a short-term bridge loan. Occupancy was below stabilization at the time of acquisition. REEP Equity, in-step with its in-house property management company REEP Management, promptly initiated a plan to increase occupancy and rehabilitate the property. Interior and exterior renovations were completed by December 2019 and occupancy quickly reached stabilization.

“The experienced team at REEP Equity did a phenomenal job improving Horizon Hill, significantly increasing the property’s value in just over two years,” said Sloot. “We were happy to help REEP Equity put in place permanent financing at historically low rates to further position this community for continued success.”

The Freddie Mac loan is structured as an adjustable rate mortgage (ARM) with a 10-year term, four years of interest only, and 30-year amortization. In addition to refinancing the existing debt, the closing provides substantial cash-out proceeds for the borrower.

“The Freddie Mac loan was an ideal financial solution and Lument guided us through the process with their trademark expertise,” said Arleen Garza at REEP Equity. “Among the many benefits is the low pre-payment option, which allows us flexibility as we continue to enhance the property through further thoughtful renovations and improvements.”

A repeat client of Freddie Mac with extensive multifamily experience, REEP Equity has bought, sold and managed over 2,000 units.

About Lument
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 banking, and investment management solutions. Lument has approximately 600 employees in over 25 offices across the United States. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. For more information, visit