JLL Capital Markets arranged the sale and Freddie Mac acquisition loan for Covenant Capital Group  

SAN ANTONIO, August 5, 2020 – JLL Capital Markets announced today that it has closed the sale of and arranged acquisition financing for the Park at Rialto, a newly constructed, 274-unit, garden-style multi-housing community built by GenCap Partners, Inc. in the northwest part of San Antonio, Texas. 

JLL worked on behalf of Covenant Capital Group, to secure the seven-year, fixed-rate loan through Freddie Mac. The loan will be serviced by JLL Real Estate Capital, LLC., a Freddie Mac Optigo℠ lender. Covenant Capital Group purchased the asset from GenCap Partners, Inc., in a JLL-brokered transaction. 

Park at Rialto was constructed in 2018 and offers an urban lifestyle due to its proximity to major employment hubs, retail, entertainment and recreational amenities. The community, with an average unit size of 882 square feet, is situated on 9.3 acres and is National Green Building Standard certified. 

“The central Texas markets like San Antonio and Austin are very attractive investment markets right now, and we are seeing growing demand for not only new apartments but investors willing to invest in this growth,” says Gary Williams, CFO of GenCap Partners, Inc. “That is why we have three new starts in these growing suburban areas.”  

The JLL Capital Markets team that led the financing efforts on behalf of the borrower was led by Senior Director CW Sheehan and Analysts Alastair Barnes and Scott Dickey. The JLL Capital Markets team representing the seller was led by Senior Managing Director Sean Sorrell.   

“Park at Rialto is a great acquisition for Covenant Capital Group, as they expand their portfolio in Texas,” Sheehan added. “The property offers excellent access to major employers and will benefit from the continued growth between Boerne and San Antonio.”   

JLL Capital Markets announced today the arrangement of a $30.58 million loan regarding the acquisition of the Amber Ridge Apartments located at 2421 Foothill Boulevard in the greater Los Angeles area of La Verne, California. 

JLL worked on behalf of the borrower, Silver Star Real Estate, to secure the 10-year, floating-rate loan through Freddie Mac. The loan will be serviced by Holliday Fenoglio Fowler LP, a JLL company and a Freddie Mac Optigo℠ lender. 

Amber Ridge Apartments consist of 147 garden-style units and is located in the La Verne suburb of Los Angeles. With breathtaking mountain views, the apartment community is near various retail, restaurants and entertainment and about 30 miles from the downtown area.

Boasting a combination of both modern and classic apartment styles, Amber Ridge has a heated swimming pool, 24-hour fitness center, barbeque area with outdoor entertainment such as picnic areas, two playgrounds, a clubhouse and more. 

The JLL Capital Markets team representing the borrower was led by Managing Director Greg Brown, Associate Nicolas Lench and Analyst Charlie Vorsheck.

“We were pleased to deliver our client with excellent rate and terms while working through the closing of this loan during the peak of the COVID-19 pandemic,” said Brown. “The attractive loan terms will allow them to execute their business plan and drive their returns.” 

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Greystone, a leading national commercial real estate finance firm, has provided a $30,821,000 Freddie Mac Forward Tax-Exempt Loan (TEL) to help finance the addition of 172 units to an existing affordable housing property in Bloomington, MN. The loan was originated by Kyle Jemtrud, managing director at Greystone, on behalf of Aeon.  

The Freddie Mac affordable loan carries a two-year forward period plus an 18-year term at a fixed rate with a 40-year amortization. The financing, in combination with other capital sources, will be used to construct 172 new apartments on land adjacent to the existing Village Club apartment complex located at 1930 E. 86^th St. The two new four-story buildings will include three- and four-bedroom homes to serve larger families. With construction due to begin in August 2020, the community will be known as SoLo Apartments.   

Today, the 306 existing units at the adjacent Village Club serve mixed-income residents, with more than half of the units at or below 60 percent of the area median income and the remaining units at or below 80 percent of the area median income. Two thirds of the new units to be constructed at SoLo will be affordable at or below 60 percent of the area median income, and one third will be affordable at or below 80 percent of the area median income. The existing and to-be-constructed buildings are on an almost 18-acre site that features an indoor and outdoor pool, a racquetball court, a movie room and updated community space.

“Greystone’s knowledge and expertise in affordable housing, as well as their strong relationship with Freddie Mac, were all integral to this financing package being a success,” said Alan Arthur, President and CEO of Aeon.

“This Freddie Mac program is a fantastic option for affordable housing developers. It allows them to secure long-term exit financing on tax credit construction projects before they ever break ground,” said Mr. Jemtrud. “We truly enjoy working with Aeon and helping them finance their portfolio to serve the residents of Minnesota.”

PHOENIX, June 8, 2020 – JLL Capital Markets announced today that it has arranged a refinancing totaling $185.63 million for a 1,439-unit portfolio of five multi-housing properties in and around Phoenix, Arizona.

JLL worked on behalf of the borrower, a partnership between Wealhouse Capital Management and Western Wealth Capital, to secure five, seven-year, floating-rate non-recourse loans through Freddie Mac. The loans will be serviced by Jones Lang LaSalle Multifamily, LLC, a Freddie Mac Optigo℠ lender.

The portfolio comprises the Carlyle Apartments and the Carlyle Townhomes in Phoenix; Greentree Place and Autumn Creek in Chandler; and Spring Meadow in Glendale. The properties are garden-style and were constructed between 1981 and 1996 and feature a range of amenities, including resort-style pools, clubhouses, fitness rooms, basketball courts, valet trash service, green areas and dog parks. The assets are situated in excellent locations throughout metropolitan Phoenix, which is the nation’s No. 1 multi-housing market in terms of historical and projected rent growth.

“Wealhouse is happy with our continued investments in initiatives that bring benefits to the tenants such as upgrading the energy efficiency of the properties and improving ESG,” said Scott Morrison, CEO of Wealhouse Capital. “We also look forward to continuing our investments in Phoenix and its surrounding sub-markets as we continue to anticipate leading population and economic growth.”

The JLL Capital Markets team representing the borrower was led by Managing Director Josh Simon and Senior Director Brad Miner.

“The Phoenix multi-housing market has remained extremely resilient during this current pandemic, affording us the opportunity to provide significant financing, in terms of multi-housing assets in the Phoenix area, to Wealhouse and Western Wealth teams on these five assets,” Miner said.

“It’s always a pleasure working with the borrower and their impressive portfolio, and we are grateful for our partners at Freddie Mac, who remained steadfast through the process and executed their part expertly,” Simon added.

JLL delivers multi-housing investors a full range of solutions through one diverse, integrated platform. The division employs approximately 400 professionals who provide comprehensive investment sales and disposition services with access to thousands of domestic and foreign investors. JLL is also one of the nation’s largest affordable and conventional multi-housing and seniors housing lenders with comprehensive loan underwriting, asset management and loan servicing capabilities.

Greystone, a leading national commercial real estate lending, investment, and advisory company, has provided a $29.9 million Freddie Mac loan to acquire a 280-unit multifamily property in Noblesville, Indiana. The transaction was originated by Dan Sacks in Greystone’s New York office, on behalf of Lightstone.

The $29.9 million Freddie Mac loan carries a 10-year term with a 30-year amortization, with the first three years of interest-only payments.  The loan proceeds will be used to complete ongoing renovations to the property.

Built in 2009, Autumn Breeze Apartments is a garden-style community consisting of 1-, 2- and 3-bedroom units with high-end finishes, fireplaces and private patios and balconies. Residents of the pet-friendly community enjoy access to amenities such as a pool and fitness center, outdoor recreational facilities, billiards room, conference room and business center. The property is minutes from historic downtown Noblesville, near the Ruoff Home Mortgage Music Center and Hamilton Town Center, as well as area parks, recreation and entertainment.

“We are pleased that we were able to help our client secure the right financing terms and continue building out their portfolio with this acquisition,” said Mr. Sacks. “Our extensive lending platform means we can be creative and come up with solutions that others can’t, and we’ll always go the extra mile to help clients realize their dreams.”

“We couldn’t be happier with the efforts of our Greystone team,” said Mr. David Lichtenstein, principal of Lightstone. “At a time when so much is uncertain, we knew we could rely on our team to get this transaction done in a way that seemed effortless. We look forward to working with them again in the future.”