Asset Level Capital Equity

Client: An Atlanta based real estate owner with a 30 year track record, mainly in the multifamily sector.

Situation: The operator is under contract to buy a 470-unit failed condominium conversion from a lender that took title to the asset.  The lender was able to lease up 410 of the units but the remaining 60 units are owned by individual condominium owners that purchased the units before the project halted sales.  The operator is purchasing the building at a 12% cap rate on in place rents and will seek to buy back the outstanding condominium units to create one cohesive multifamily rental property.

Capital Needs: The operator needs $30 million of joint venture equity alongside their 10% co-invest.

Solution: Reznick Capital Markets introduced the client to several potential equity investors who issued partnership term sheets for the operator to consider.