CAPRE’s Commercial Real Estate Headlines for September 9, 2019

Check out the latest deals and developments in commercial real estate for September 9, 2019:

  • Alexandria Real Estate Equities, Inc. Announces Public Offering of Senior Notes: Alexandria Real Estate Equities, Inc. is commencing an underwritten public offering, subject to market conditions, of two tranches of senior notes (the “notes”). One tranche will be a new issue of securities, while the other tranche will become part of the same series as the Company’s outstanding 4.000% senior notes due 2050, of which $500 million aggregate principal amount was originally issued on July 15, 2019. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA LLC and TD Securities (USA) LLC will act as joint book-running managers in connection with the public offering. The notes will be unsecured obligations of the Company and fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P., an indirectly 100% owned subsidiary of the Company. The Company expects the net proceeds from the notes in this offering will be used to repay the outstanding balance on its unsecured senior bank term loan and to reduce the outstanding balance on its unsecured senior line of credit, with any remaining proceeds to be used for general corporate purposes.
  • Nitya, Silverpeak and Olayan Announce Joint Venture With $150M Recapitalization of Houston Multifamily Portfolio: A partnership between Nitya Capital,  Silverpeak and the Olayan Group was formed with the completion of a $150 million recapitalization of a portfolio of five Class B multifamily assets located in Houston, Texas. Nitya ultimately delivered a solid net return to its investors in the transaction and fully realized the investment. In conjunction with the recapitalization, Nitya will remain in its role as an owner-operator of the assets and will continue to focus on quality property management and execution of value-add improvements across the properties. Totaling over 1,500 units, the portfolio is comprised of five separate workforce housing assets that are well-located in attractive Houston submarkets with easy access to the city’s major employment hubs.
  • Walker & Dunlop Provides $14 Million in Acquisition Financing for Hotel Property Adjacent to Major Airport in Newark, New Jersey: Walker & Dunlop has structured a $14,224,000 senior loan for the acquisition and future repositioning of the 191-key Holiday Inn Newark Airport. Ideally situated across the street from Newark Liberty International Airport, in New Jersey, the hotel caters to both leisure and business travelers, offering limited services at a reasonable price to better serve the growing number of on-the-go travelers requiring a short-term stay. Led by Vice President Jeff Baik, the Walker & Dunlop team secured a non-recourse, fixed-rate bridge loan at 77.5 percent loan to cost from a regional bridge lender on behalf of the client, who is an experienced hotel investor. The financing provided capital to acquire the asset and allocated additional funding to execute the borrower’s business plan, which entails extensive renovations and a comprehensive repositioning of the property over the next few years.
  • Trevian Capital Funds $103,025,000 in Construction-Completion Bridge Loans Across Five Transactions: Trevian Capital, a direct commercial real estate bridge lender that provides short-term loans nationwide, recently funded five first-mortgage construction-completion bridge loans in the Tri-State area totaling $103,025,000. The projects include 1) Manhattan, NY$26,350,000 – Residential condo construction-completion and condo inventory loan; $5mm of hard & soft costs remaining; 2) Fairview, NJ$21,500,000 – Acquisition & Construction loan of a 50% completed multifamily property; $10.1mm of hard & soft costs remaining; 3) Manhattan, NY$26,000,000 – Residential condo construction-completion and condo inventory loan; $1mm of hard & soft costs remaining; 4) Pompton Lakes, NJ$6,000,000 – Recapitalization on a free-and-clear 50% completed multifamily asset; $4.25mm of hard & soft costs remaining; 5) Manhattan, NY$23,175,000 – Residential condo construction-completion and condo inventory loan; $3.5mm of hard & soft costs remaining.
  • Hunt Real Estate Capital Finances the Acquisition and Renovation of an Affordable Multifamily Property Located in San Pedro, California: Hunt Real Estate Capital, a leader in financing commercial real estate throughout the United States, announced today it provided a Fannie Mae affordable multifamily loan in the amount of $64.14 million to finance the acquisition and renovation of an affordable multifamily property located in San Pedro, California. Park Western Apartments is a 216-unit property that is comprised of fourteen residential buildings that were built in 1969. The property is located on a 7.72-acre site at 1327 West Park Western Drive and contains 32 one-bedroom units, 128 two-bedroom apartments, 32 three-bedroom units, 24 four-bedroom apartments, and a 1,300-square-foot maintenance shop. The Fannie Mae M.TEB loan has a 17-year term, 40-year amortization, and provides significantly greater loan proceeds to support a substantial rehab budget. According to RBC Capital Markets, this was the second largest Fannie M.TEB loan made and featured the lowest rate closed in the program since 2016.

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