LOS ANGELES — Ready Capital has closed $17.3 million in financing for the acquisition, renovation and stabilization of a 94-unit apartment community in Los Angeles’ Norwalk submarket. Upon acquisition, the undisclosed borrower plans to implement a capital improvement plan including taking care of deferred maintenance projects while renovating unit interiors, building exteriors and common areas. Ready Capital closed the non-recourse, interest-only, floating-rate loan, which features a 36-month term, two extension options, flexible prepayment and a facility to provide future funding for capital expenditures.
JACKSONVILLE, FLA. — Ready Capital has closed on a $17 million acquisition loan for a 160-unit unnamed multifamily property in Jacksonville. Upon acquisition, the unnamed sponsor will implement a capital improvement plan. The non-recourse, interest-only, floating-rate loan features a 36-month term, two extension options and is inclusive of a facility to provide future funding for capital expenditures.
DALLAS — Los Angeles-based Thorofare Capital has provided a loan of an undisclosed amount for the refinancing of a portfolio of 13 office buildings in the Dallas Design District. The buildings are newly converted and renovated flex office properties, and the borrower, Quadrant Investment Properties, plans to use some of the proceeds to complete renovations over the next few months Brian Carlton and Jim Curtin of JLL placed the loan with Thorofare Capital on behalf of Quadrant.
HOUSTON — New York City-based Ready Capital has closed a $22.7 million loan for the acquisition, renovation and stabilization of an unnamed, 212-unit apartment complex in Houston’s Greenspoint submarket. The nonrecourse, interest-only loan features a 36-month term, floating interest rate, two extension options and a facility to fund future capital improvements. The undisclosed sponsor plans to implement a value-add program.
DETROIT — Ready Capital has closed a $3.5 million loan for the acquisition and lease-up of a roughly 75,000-square-foot industrial property in the Southern I-275 Corridor of Detroit. The undisclosed borrower plans to address deferred maintenance and lease up the vacant building. The nonrecourse loan features a two-year term, floating rate and interest-only payments.
NEW YORK CITY — New York City-based Ready Capital has closed a $22 million loan for the acquisition, renovation and stabilization of a portfolio of six industrial properties that are located in various parts of New Jersey and Pennsylvania. The nonrecourse, interest-only loan carried a 48-month term and a floating interest rate, an extension option and a facility to fund capital improvements. The borrower was not disclosed.
2021 was an exciting year in the multifamily financing market, and for Berkadia mortgage banking — we originated over $40 billion in volume for our clients across our various lender programs, an increase of 50 percent over our 2020 volumes. Every lender in the market demonstrated a strong appetite for originating loans and increased their holdings of mortgages, which was crucial given that the Federal Housing Finance Agency (FHFA) lowered the caps for Fannie Mae and Freddie Mac to $70 billion each. While the final numbers haven’t been released yet, the Mortgage Bankers Association (MBA) projected the market would originate $578 billion of loans backed by commercial real estate in 2021, a 31 percent increase from 2020 ($442 billion) and just below 2019’s record volume of $601 billion. The fundamentals of the multifamily sector drove unbelievable rent growth, which in turn drove increased investor interest. In 2021, we advised on 762 investment sales transactions, totaling close to $27 billion in volume, a truly record-breaking year for us! This tremendous investor appetite brought about an enhanced need for financing, and often more creative financing. With the government-sponsored enterprises (GSEs) more limited, life companies and commercial banks answered the call, but the …
WASHINGTON, D.C. — Merchants Capital has secured $115 million in total financing for Parkside 8 and Parkside 10, two workforce housing developments located in Washington, D.C. The borrowers, City Interests Development Partners and Ravinia Capital Group, are co-developing the overall project. Bridge Investment Group is managing the Opportunity Zone strategy on behalf of the developers. The construction timeline was not disclosed. Merchants Capital secured $56 million in construction financing through Merchants Bank of Indiana, as well as $59 million in permanent financing through Freddie Mac Non-Low-Income Housing Tax Credit (LIHTC) forward commitments and Freddie Mac permanent loans. Upon completion, Parkside 8 and 10 will feature 230 residential units and approximately 14,000 square feet of retail space. Within the new properties, select units will be reserved for residents earning between 80 percent and 120 percent of area median income (AMI). The multifamily buildings are part of Parkside, a 3.1 million-square-foot master-planned development that will include between 1,500 and 2,000 residential units, up to 50,000 square feet of retail space and 860,000 square feet of office space. Parkside will also feature a one-acre park and a new pedestrian bridge that crosses over Kenilworth Avenue and Interstate 295. Additionally, Parkside offers four neighborhood …
LAS VEGAS — Ready Capital National Bridge team has closed the financing for the acquisition, conversion, renovation and stabilization of a 156-unit student housing property in the University District submarket of Las Vegas. Upon acquisition, the undisclosed sponsor plans to reposition the asset from student housing to traditional multifamily through a rebranding and renovation program. Ready Capital closed the $29.6 million non-recourse, interest-only, floating-rate loan, which features a 36-month term and two extension options. Additionally, the loan includes a facility to provide future funding for capital expenditures.
CLEVELAND — Bloomfield Capital has provided a $4 million senior bridge loan for a 100,000-square-foot industrial property in Cleveland. The undisclosed borrower has owned the building for several years and plans to utilize the loan to finalize interior renovations and upgrades to the property, which is more than 90 percent leased to retail and food processing tenants. The borrower plans to refinance the bridge loan with a conventional loan in 12 months.