The loan refinanced Millennium at Hometown, a to-be-completed Class-A multifamily property comprising of 306 apartments and 11,697 SF of retail. The sponsor acquired the Property in 2017 as vacant land and is expected to complete construction imminently, with the first building projected to TCO in December 2020. The loan, which was underwritten with an LTV ratio of 70.8%, has a two-year initial term and two single-year extension options.
“Despite the strong sentiment in multifamily, there is still significantly less liquidity in the transitional bridge space than there has been in previous years, allowing ACRE to gain market share providing institutional sponsors (Sovereign) with the liquidity needed to navigate current market conditions,” said Daniel Jacobs, Head of Origination of ACRE.
The loan was brokered through JLL Capital Markets Senior Managing Director Greg Nalbandian and Director Jesse Wright.
The transaction represents the third deal closed by ACRE Credit within the last 60 days, totaling over $200 million of first mortgage bridge financings. With plans to continue its focus on financing multifamily assets, ACRE anticipates it will deploy more than $1B in capital in the coming year.
ACRE contact:
Daniel Jacobs
Head of Origination
daniel@acremgt.com
212-266-6922
Press contact:
Greg McGunagle
President, Transmitter
gmcgunagle@transmitterpr.com
212-967-1449
