A Freddie Mac conventional multifamily loan was recently secured to refinance Horizon Hill, a 273-unit garden-style apartment complex in San Antonio. 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, initiated a plan to increase occupancy and rehabilitate the property. Interior and exterior renovations were completed by December 2019 and occupancy quickly reached stabilization.

John Sloot, vice president in Lument’s Dallas office, led the refinancing transaction. The Freddie Mac loan is structured as an adjustable-rate mortgage 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.

“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,” said Arleen Garza of REEP Equity.