Lument grants $ 15.1 million loan to Fannie Mae to facilitate 1031 reverse exchange acquisition of multi-family community in North Carolina

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NEW YORK, January 11, 2022 / PRNewswire / – Lument provided a $ 15.1 million Conventional multi-family loan from Fannie Mae to facilitate the acquisition of Sommerset Place Apartments, a 144-unit multi-family community built in 1983 and located in Raleigh, North Carolina. James kelly, a director of Lument’s Atlanta office, led the transaction.

“Through our successful collaboration, we have been able to help this experienced sponsor build a quality community in an attractive market,” said Kelly de Lument. “In addition, we were able to do this within a tight deadline and through a financing solution that offered multiple advantages, namely a full term interest period and a reverse 1031 structure. “

The Fannie Mae loan has a low fixed interest rate, a 30-year amortization and a 10-year term, all interest-only (IO). The transaction was structured as a 1031 reverse exchange, in which the buyer acquires a replacement property before transferring the abandoned property.

The sponsor, who has managed the property since 2017, has extensive experience in successfully renovating properties after purchasing them. Following the acquisition, the sponsor expects to complete $ 2.7 million in substantial renovations to the community over the course of three years, including approximately $ 6,000 per unit allocated to property-wide improvements and $ 13,000 per unit allocated to renovations and unit upgrades.

The fence provides for approximately $ 223,000 for a green repair receiver. The borrower plans to implement green improvements to achieve 30% combined energy and water savings.

On Light
ORIX Real Estate Capital Holdings, LLC, d / b / a Lument, is a subsidiary of ORIX Corporation United States. Lument is a national leader in commercial real estate financing. As a combined organization of traditional industry experts Hunt Real Estate Capital, Lancaster Pollard and RED Capital Group, Lument offers a comprehensive set of tailor-made capital solutions for investors in multi-family, affordable, senior housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA and USDA lender. In addition, Lument offers a range of proprietary commercial lending, investment sales, investment banking and investment management solutions. Securities, investment banking and advisory services are provided by OREC Securities, LLC, d / b / a Lument Securities, member of 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 advisor with the United States Securities and Exchange Commission. For more information visit www.lument.com.

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