Lument | January 27, 2022
Lument recently announced the closing of a $26.7 million proprietary bridge loan to acquire and renovate Harbor Village Apartments and Townhomes, a 229-unit multifamily apartment community in Melbourne, Florida. Josh Messier, managing director at Lument, led the transaction.
It was a pleasure to work with these experienced, repeat Lument clients, We were able to structure and fund 100% of the required capital expenditures with loan proceeds to help them achieve their goals, including $3.8 million in capital improvements to upgrade unit interiors and amenities."
The $26.7 million bridge loan features a variable interest rate and a three-year term, with two 12-month extension options. The community's current occupancy is 96%.
The Harbor Village property is made up of two sections: Harbor Village Apartments and Harbor Village Townhomes. Harbor Village Apartments was completed in 1976 and is situated on 6.43 acres of land with 143 apartments in eight buildings. Harbor Village Townhomes contains 86 units in 18 two-story wood frame town-homes and was built on 5.80 acres in 1983. Onsite amenities for each section include a swimming pool and laundry facility.
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, real estate investment sales, investment banking, and investment management solutions. Lument has approximately 600 employees in over 25 offices across the United States. 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.
REAL ESTATE TECHNOLOGY
Paraiso Real Estate | April 27, 2022
Paraiso Real Estate, a real estate rental and sales agency has launched its own token for its upcoming vacation rental portfolio. Founded by blockchain and real estate entrepreneur, Eric Klein, Paraiso Real Estate will allow exclusive access to its LATAM rental units for the firm's token holders and investors. The firm says it plans to remove centralised platforms such as Airbnb to provide a more private, upscale and exclusive experience. More details can be found in the firm's discord.
Paraiso Real Estate operates much like a traditional vacation rental company. It offers private rentals with hotel amenities in some of the world's most beautiful destinations – starting with Medellin. What separates the firm from its competitors is the branded membership experience that users will receive including access to a variety of luxury rentals, spa services, massages, business amenities, networking opportunities, and more.
"We're mobilizing the hotel industry" Eric Klein says. "Whether it's a villa, condo or penthouse, guests can expect consistent hospitality across the platform. Our vision is to provide elevated rentals with units around the world and guests have access to these properties through our token."
Paraiso Real Estate launched on Unicrypt last week with their pre-sale selling out in under 20 minutes. The token went public on PancakeSwap on April 20th. The firm is anticipating a sharper rise once listed on CoinGecko, CoinMarketCap and other leading exchanges and indexes. To date, Paraiso already has over 700 members between their discord and telegram groups.
We've done zero marketing. That goes to show that people are ready for a product like this. It's the way of the future. We expect to have over 60 properties by the end of 2022 and a membership base of over 1,000 token holders."
Maria Caudia says, Director of Operations
REAL ESTATE INVESTMENT
Walker & Dunlop, Inc. | May 13, 2022
Walker & Dunlop, Inc. announced that it structured $47,000,000 in financing for the development of The Line, a 219-unit, Class A+ multifamily project in Savannah, Georgia. Situated just three blocks from the Savannah River, the development is within walking distance to all of Savannah's outstanding retail and lifestyle amenities.
Located in Savannah's downtown area, the property is within the bounds of a designated Economic Opportunity Zone census tract. Opportunity zones were established by Congress in the Tax Cuts and Jobs Act of 2017 and encourage long-term investments in designated low-income areas by offering incentives in the form of lower or deferred capital gains taxes.
Led by Chris Rumul and Taylor Williams, Walker & Dunlop arranged the construction financing on behalf of the developer, Standard Communities, a leading national multifamily housing investor and developer and repeat client. Collaborating across the Walker & Dunlop platform, the team pooled resources from their FHA Finance and Capital Markets groups to identify the ideal financing source for their client. The resulting financing was sourced from a regional life insurance company and includes both construction and permanent financing in a single loan. The team worked to ensure the financing terms were consistent with opportunity zone guidance, securing a 12-year construction term with four years of interest-only payments.
We are incredibly proud to play a part in the development of such a unique project and are excited to bring this distinctive, elevated living experience to Savannah. Thanks to the diligent work by our funding partners, The Line will fulfill a much-needed demand for multifamily rentals in this rapidly growing area."
Jeffrey Jaeger, Co-Founder and Principal of Standard Communities
Standard's primary goal will be to maintain the integrity of the property's original structure while combining the benefits and amenities of a new construction, modern apartment community. The resulting community will include two buildings in total and will fit seamlessly into the old-meets-new vibe of downtown Savannah. The Line will feature a full upscale amenity package, including a terrace level with a pool, sundeck, fitness center, and grill area. The project will also include onsite parking, a clubroom with views of Downtown Savannah and the Savannah River, and resident storage. Savannah boasts a vibrancy that attracts young professionals, relocated families, and tourists. The region's dynamic economy has drawn large corporations, such as Gulfstream, Savannah's largest employer, which employs around 9,800 people at its production facility.
Walker & Dunlop is the third largest provider of capital to the U.S. multifamily market, originating $49 billion in transactions and lending over $42 billion for multifamily properties in 2021. With one of the strongest networks in the industry, the firm's 2021 brokered loan originations totaled $30 billion, a 170% increase over 2020.
About Walker & Dunlop
Walker & Dunlop is one of the largest providers of capital to the commercial real estate industry, enabling real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. The power of our people, premier brand, and industry-leading technology makes us more insightful and valuable to our clients, providing an unmatched experience every step of the way. With over 1,300 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune's Great Places to Work and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.
REAL ESTATE INVESTMENT
KKR | May 10, 2022
KKR, a leading global investment firm, announced the expansion of KKR’s industrial real estate investment strategy in the U.S. to include ground-up development of Class A industrial logistics properties. KKR’s wholly owned U.S. industrial real estate platform, Alpha Industrial Properties (AIP), has begun development at four sites and has another four sites in pre-development. KKR has appointed industry veterans Greg Bradley and Matt Singleton as Senior Vice Presidents at AIP responsible for managing the platform’s sourcing, pre-development and development activity.
The eight projects are expected to deliver 1.8 million square feet (SF) of state-of-the-art industrial space serving the Atlanta, Dallas, Denver and Orlando markets. Funding for the projects is being provided by KKR Real Estate Partners Americas III, KKR’s Americas opportunistic equity real estate fund.
The addition of ground-up development capabilities enhance our ability to assemble diversified portfolios of high quality industrial real estate and increase our presence in growth markets where we believe the supply-demand fundamentals remain dynamic. Our extensive experience acquiring approximately $7 billion of industrial real estate in the U.S. over the last four years positions us to identify attractive opportunities and development is a natural extension of our strategy.”
Ben Brudney, a Director in the Real Estate group at KKR who oversees the firm’s industrial investments in the United States
The development program augments KKR’s strategy of acquiring industrial assets and portfolios in major U.S. markets that are experiencing outsized demand for logistics real estate driven by demographic trends and the proliferation of ecommerce. Across its funds, KKR has committed or acquired approximately $7 billion of U.S. logistics assets since 2018 and currently owns over 45 million SF of industrial real estate.
Square Mile Capital and BMO Harris Bank have provided KKR with a $200 million construction facility to finance its investments in industrial developments nationwide.
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries.