Brickstone Partners, a full-service real estate investment and development firm located in Nashville, Tenn., today announced the refinance and recapitalization of two multifamily assets valued at more than $180 million. 

The properties were extensively renovated after their purchase in 2014 and 2015, producing a significant increase in revenue and asset value. Both assets were underleveraged. This transaction allowed Brickstone to memorialize to date a 47.33% IRR and a 6.97x multiple and 26.62% IRR and 4.36x multiple on the second property. 

“These highly successful investments continue to reaffirm the effectiveness of our core investment strategy, which is to invest in highly constrained markets with a unique focus on creative value-add strategies that create an asymmetry of risk and reward,” said Daniel Otis, founder and principal of Brickstone Partners. “We’re pleased that we were able to add significant value to the City of Boulder, its residents and our investment community through the improvement of these two assets.”

Brickstone Partners is one of the largest operators of student housing in Boulder, Colo. The firm has invested more than $500 million in the city in the last 14 years. 

DENVER, CO – December 3, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces the financing of LakeHaus, a 200-unit, Class A apartment development located on Lake Calhoun in Minneapolis, Minnesota.

The HFF team worked exclusively on behalf of a joint venture led by Brickstone Partners Inc. and KMK Capital, in partnership with Deutsche Finance America, to secure a low-leverage, floating-rate construction loan through a national bank.  Additionally, HFF procured mezzanine financing through EverWest Real Estate Partners.  The development is anticipated to be valued at more than $119 million when complete.

LakeHaus will be a best-in-class, eight-story ‘post-tensioned concrete’ apartment building, constructed on a 1.7-acre site at 3100 West Lake Street that features two levels of subterranean parking totaling 373 spaces.  The development site is optimally situated on Lake Calhoun’s Northwest shore and in close proximity to Calhoun Commons, a Whole Foods Market-anchored shopping center.  Additionally, LakeHaus will be within walking distance to a future light rail stop and is less than five miles from downtown.  The unit mix comprises 36 studio, 85 one-bedroom and 74 two-bedroom units as well as five penthouses.  In addition to luxury finishes in each of the homes, the community will include a rooftop swimming pool and sundeck, spacious courtyards, gourmet grilling stations, an outdoor maze, top-floor clubroom, state-of-the-art fitness center, lobby with coffee bistro, guest suite and car share service along with a communal sailboat for use on the lake. Due for completion in 2020, the property will provide sweeping views of Lake Calhoun, downtown and the surrounding area.

The HFF team representing the borrower included director Kristian Lichtenfels, managing director Josh Simon, director Stella Pappas and managing director Jules Sherwood, a licensed Minnesota real estate broker.

“Our HFF team is thrilled to have had the opportunity to advise and assemble a strong foundation of capital for this landmark development and the LakeHaus development team,” Lichtenfels said.