Lument Provides $15.1 Million Fannie Mae Loan to Facilitate Reverse 1031 Exchange Acquisition of Multifamily Community in North Carolina

BY PR Newswire | AGENCY | 01/11/22 09:00 AM EST

NEW YORK, Jan. 11, 2022 /PRNewswire/ -- Lument has provided a $15.1 million Fannie Mae conventional multifamily loan to facilitate the acquisition of Sommerset Place Apartments, a 144-unit multifamily community built in 1983 and located in Raleigh, North Carolina. James Kelly, a director in Lument's Atlanta office, led the transaction.

(PRNewsfoto/Lument)

"Through our successful collaboration, we were able to help this experienced sponsor acquire a quality community in an appealing market," said Lument's Kelly. "Further, we were able do so on a tight timeline and via a financing solution with multiple benefits, namely a full-term interest-only period and a reverse 1031 structure."

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

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

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

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 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.

MEDIA CONTACT
Michael Ratliff | Marketing Director
212-588-2163 | michael.ratliff@lument.com

?

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/lument-provides-15-1-million-fannie-mae-loan-to-facilitate-reverse-1031-exchange-acquisition-of-multifamily-community-in-north-carolina-301458150.html

SOURCE Lument

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article