M id A tlantic Real Estate Journal — Appraisal — September 11 - 24, 2020 — 11A
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A ppraisal
Refinance multifamily property in Glen Burnie, MD Hunt Real Estate Capital provides $6.4M Fannie Mae loan
requiring higher risk adjusted rates of return for investment. Property types like hotels or retail malls which are out of equilibrium, are only selling at a discount because the owners are forced to do so in order to improve their current situation – i.e., lack of cash, looming debt maturity, oper- ating performance impacted by government restrictions, rising operating costs, etc. The outlook is for the econ- omy to start after an effective treatment for the virus is found, hopefully by yearend 2020. It is anticipated for commercial real estate fun- damentals to lag the economy into second half of 2021, so market pricing will generally be uncertain at best over the next year. However, if we generate positive economy growth, lenders capitulate and workout or write-off loan losses on troubled assets, then some distressed asset sales activity will present itself later in 2021 and market clarity will return for participants. In summary we need to re- member that market value is representative of a transaction that is void of undue duress or exceptional factors that impact the motivations of the parties involved (i.e., sellers, buyers, lenders) in the consummation of a property sale. At the cur- rent time market pricing for sellers and buyers is uncertain at best. The outlook is for the economy to gain traction after an effective treatment for the virus is found, which is hopefully by yearend 2020. At that time, it is anticipated that commercial real estate fundamentals will become clearer, removing uncertainty and making underwriting more transparent thus activity should turn positive into the second half of 2021. Jay White, MAI, CRE is the founder of Apex Realty Advisory. MAREJ continued from page 10A Commercial real estate valuation . . . has provided a Fannie Mae conventional multifamily loan in the amount of $6.4 million to refinance a property located in Glen Burnie,, a suburban community near the Baltimore- Towson metropolitan area. Glen Burnie Town Apart- LEN BURNIE, MD — Hunt Real Estate Capital announced it G
repairs and renovations. “This closing allowed us to pay off a bridge loan fromHunt, and we executed entirely dur- ing the increasing concern over the coronavirus pandemic,” said Chip Davis of Corner Lot Advisors , part of the bor- rowing entity. “To get to the finish line, we all had to be flexible about inspections and understanding what was, and what was not, possible to get the deal done in the time frame necessary.” The Fannie Mae loan fea- tures a low fixed rate and 12-year term, with interest only for the first four years. In
addition, the closing provides for over $125,000 in renova- tions, including resurfacing a concrete courtyard, upgrading units, and improving elevated walkways. “This property had a commer- cial space we could not count in the underwriting, and we had additional escrows required by Fannie Mae,” said Bryan Cul- len , senior managing director at Hunt Real Estate Capital. “Yet there were enough excess proceeds to fund these escrows and we fully expect this prop- erty to perform well through the next year to return these funds to the borrower.” MAREJ
Glen Burnie Town Apartments
ments is a 54-unit, four-story property that was built in 2000 and acquired by the borrower in 2018 via a proprietary bridge
loan from Hunt. The new Fan- nie Mae loan puts in place low- cost, permanent financing and provides additional funds for
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