Hunt Real Estate Capital announced today that it has provided a first mortgage bridge loan in the amount of $39.5 million to finance the acquisition and renovation of Mayflower Apartments, a 266-unit, high-rise multifamily community located in Virginia Beach, VA.
The property is situated on a 2.09-acre site consisting of two contiguous and one non-continuous parcels at 205 and 306 34th Street and 3420 Atlantic Avenue. Mayflower Apartments is a 15-story residential building connected to a three-story parking garage and a single-story commercial building with a satellite parking lot.
The borrower is Lynd Company and VTS Capital Partners, who purchased the property from Harbor Group International. The five-year bridge loan features full-term interest-only payments.
“Mayflower Apartments was built in 1949 and renovated in 2015,” noted Marc Suarez, Director at Hunt Real Estate Capital. “As part of the new loan, a future funding facility of $4.6 million was allocated for capital improvements.”
Immediately following acquisition, the borrower plans to implement a wide variety of upgrades, including the renovation of all 266 unit interiors and exterior upgrades.
“This is a crown jewel in Virginia Beach; there is nothing else like it,” A. David Lynd, the CEO of Lynd, said in a statement. “With the Mayflower, we see a tremendous opportunity to execute our current strategy of identifying unique properties that are undervalued and craft tailored plans to unlock the value in both rents and occupancies.”
Full interior unit upgrades are planned, and general upgrades will include façade repairs, HVAC replacement, signage, parking lot repairs, technology upgrades, office/clubroom updates, exterior pool cabana upgrades, and interior pool repairs.
“We have a long history of transacting with Lynd on this type of value-add asset,” Suarez added. “Taking an older building and bringing the amenities up to par with a brand new building – all below replacement cost – is something that is very attractive to us.”
Henry Stimler, Managing Director at Newmark Knight Frank, worked to facilitate the transaction.
Mayflower Apartments is located between 34th and 35th Streets and Atlantic and Pacific Avenues, one block off the Virginia Beach boardwalk. Property amenities include an interior pool, exterior pool and spa, storage units, fitness center, dog park, laundry facilities, clubhouse, barbecue/picnic area.
About Hunt Real Estate Capital
Hunt Real Estate Capital, a division of Hunt Capital Holdings LLC, (“HREC”) is a leader in financing, investing and managing multifamily housing and commercial real estate. HREC is a source of debt and equity capital for multifamily, affordable housing, manufactured housing, healthcare/senior living, retail, office, industrial, self-storage, and mixed-use assets through Fannie Mae, Freddie Mac, FHA, its own balance sheet and managed public and private investment vehicles. HREC is the third largest multifamily property manager in the US. To learn more, visit https://huntrealestatecapital.com.
