Electra Capital, a boutique lender specializing in capital solutions for the multifamily industry, announced today that it has originated a $43 million bridge loan for sponsor Three Pillars Capital Group’s acquisition of two apartment communities in Houston, Texas.

Gryphon Real Estate Capital Partners provided the senior mortgage of $35 million, while Electra Capital retained an $8 million mezzanine loan. This $43 million transaction marks the third loan that Gryphon and Electra have recently closed together.

CBRE Vice President Derek Fasulo of Houston arranged the financing. Gryphon Real Estate Capital Partners, LLC will be the asset manager for the senior loan portion of the bridge loan.

Three Pillars Capital Group acquired the 256-unit Westridge Gardens and 364-unit Mainridge, two late-1970s vintage properties located a half mile apart in the fast-growing Medical Center South submarket of Houston. The bridge loan from Electra will allow Three Pillars to significantly upgrade the exteriors and interiors of the properties, improve common areas and recast the properties through attentive management and a focus on providing value for tenants.

“Value-added multifamily properties in Sunbelt cities like Houston are continuing to benefit from an influx of residents from other high-cost-of-living states and densely populated cities,” Samuel J. Greenblatt, CEO of Electra Capital. “This loan gave Three Pillars the opportunity to build its portfolio with two ideally located value-add properties and the capital needed to execute on its renovation plan.”

“Gryphon is proud and excited to continue our burgeoning relationship with Electra,” Jim Hopkins, co-managing partner of Gryphon commented. “Our two firms have shown once again that we can quickly and seamlessly underwrite and close multifamily loans together.”

Josh Welch, Founder and Managing Principal of Three Pillars Capital Group, stated “TPCG is excited to expand our portfolio in the Houston area and we are very appreciative of the effort put in by the Gryphon and Electra teams in getting our loan closed. We expect this transaction to be the first of many together.”.

This is the second sizeable bridge loan Electra has provided in the past month. In October, Electra closed on a $94 million bridge loan for Four West Las Olas, Elevate Partners’ new luxury apartment tower in downtown Fort Lauderdale, Fla.

Located at 2501 Westridge Street, Westridge Gardens was built in 1979 and offers one- and two-bedroom units ranging from 670 square feet to 900 square feet. The gated, pet-friendly community offers a pool, laundry facilities, and a fitness center. Mainridge, also built in 1979, is located at 2600 Westridge Street and offers one- and two-bedroom units starting at 691 square feet up to 997 square feet, with similar amenities. Both apartment communities are ideally located with easy access to I-610/Alt-90/Hwy288 and lie in close proximity to NRG stadium and Texas Medical Center.

About Electra Capital

Electra Capital provides bridge loans, mezzanine loans and preferred equity ranging from $5 million to $150 million. The firm benefits from the combined experience of its executive leadership team, who have collectively closed hundreds of transactions representing over $10 billion over their careers. Electra Capital boasts a national network of experts in acquisitions, underwriting, structuring, closing, and management, enabling us to effectively meet our client’s needs.

About Gryphon Real Estate Capital Partners

Gryphon’s Transitional Multifamily Bridge Loan Program focuses on originating first mortgage loans for value-add and lease-up strategies on multifamily properties requiring repositioning, capital improvements and/or time to stabilize the rent roll, prior to securing long-term financing. Gryphon’s competitive advantage is its ability to lend on balance sheet combined with extensive real estate operating experience.

The 25-story Four West Las Olas Apartments opened this year

Fort Lauderdale, Fla. (October 12, 2020) –  Electra Capital, a boutique lender specializing in capital solutions for the multifamily industry, announced today that it has closed a $92 million bridge loan for Four West Las Olas, Elevate Partners’ new luxury apartment tower in downtown Fort Lauderdale, Fla. The loan replaces an existing construction loan for the property, which is currently 58% leased.  

This marks Electra Capital’s entry into the bridge loan market, and is the largest loan Electra has originated to date. Electra Capital brought in Benefit Street Partners Realty Trust, a public non-traded mortgage REIT, to provide the senior mortgage of $76 million, while Electra Capital retained a $16 million mezzanine loan.

“This loan illustrates the strong demand for alternative forms of financing given the current dislocation of the capital markets,” said Samuel J. Greenblatt, CEO of Electra Capital. “Electra’s decades of multifamily expertise, and reputation for closing expeditiously, allowed us to provide Elevate Partners the necessary capital to complete lease up of its new luxury property in Fort Lauderdale.”

Michael Comparato, Head of Commercial Real Estate for Benefit Street, commented, “Sam and I have known each other for over two decades and we have provided financing to Electra affiliates in the past. We find Electra to be exceptional in asset selection which gave us the ability to commit and close on the transaction in 22 days start to finish.”

Cushman & Wakefield arranged the financing. 

Denny St. Romain, Vice Chairman of Cushman & Wakefield stated. “The Electra Capital team were consummate professionals and worked diligently to close the loan. Their entire process from quote to closing proceeded smoothly. I expect them to be a very prolific lender given our experience with them on the loan for Four West Las Olas.”

The 25-story, 250-unit luxury apartment tower located at 4 West Las Olas Boulevard features studio, one-, two-, and three-bedroom floor plans, along with penthouses, ranging from 588 square feet to 1,376 square feet. Apartments feature quartz countertops, stainless steel appliances, full size washer/dryers, private balconies and view of the Atlantic Ocean and New River. Community amenities include a billiards/speak easy lounge with player piano, rooftop pool, sky club room, 24-hour state-of-the-art fitness center, coffee bar and business center, and garage parking. 

Electra Capital is an active alternative lender, and has closed the following loans since the onset of the COVID-19:

·        $12.2 million of preferred equity for the acquisition of the 330-unit Pines at Woodcreek Apartments in Houston, Tex.

·        $3.25 million preferred equity investment in The Carter, a 300-unit apartment community in Norcross, Ga.

·        $5.5 million preferred equity investment in Stonebridge at City Park Apartments, a 240-unit community in Houston, Tex.

·        $4.09 million preferred equity investment in Element at University Park, a 192-unit apartment community in College Station, Tex.

About Electra Capital

Electra Capital provides bridge loans, mezzanine loans and preferred equity ranging from $5 million to $150 million. The firm benefits from the combined experience of its executive leadership team, who have collectively closed hundreds of transactions representing over $10 billion over their careers. Electra Capital boasts a national network of experts in acquisitions, underwriting, structuring, closing, and management, enabling us to effectively meet our client’s needs.

Norcross, GA (August 10, 2020) – Electra Capital, a boutique lender specializing in flexible, short-term multifamily financing solutions, has closed on a preferred equity investment for the refinancing of The Carter @ 4250, a 300-unit apartment community located in Norcross, Georgia. One Real Estate Investment (OREI), a real estate investment and asset management firm based in Miami, owns the property. 

Electra’s $3.25 million, 36-month preferred equity investment was structured behind a first mortgage through Freddie Mac and allows the sponsor to refinance the property and complete the renovations, including interior renovations to each unit and exterior renovations to the buildings and grounds. Berkadia arranged both the debt and equity for the transaction.

Electra Capital provides bridge loans from $10 million to $150 million, and mezzanine loans and preferred equity in the range of $5 million to $30 million. This is the second time this year that Electra Capital has worked with OREI; in May of this year, Electra provided $4.09 million in preferred equity for OREI’s acquisition of Element at University Park, a 192-unit apartment community in College Station, Texas.

 “Electra continues to provide a vital source of capital to the multifamily industry as we enter the second half of 2020 with a lot of uncertainty and volatility in the market,” said Samuel J. Greenblatt, Electra Capital’s CEO. “We were able to structure and close this deal in eleven days thanks to the sponsor’s strength and our track record and experience in the market.” 

 Jeronimo Hirschfeld, President and CEO of OREI, added, “OREI is pleased to build on our relationship with Electra Capital as an equity partner. The Carter has seen significant appreciation since buying 18 months ago and we were able to capture some of that value for our partners via a refinance / recap of the preferred equity.”

 Originally built in 1985, the Carter @ 4250 is situated at 4250 Jimmy Carter Boulevard. Located under ten minutes away from a variety of restaurants, apartment communities, churches, salons, and stores, the community’s one- and two-bedroom units include variety of personal amenities. Community amenities feature a swimming pool, on-site management, a playground, free weights, a BBQ/picnic area, on-site maintenance, a clubhouse, a laundry center, a fitness center, a club discount, a business center, a sports court, and a dog park.

 About Electra Capital

Electra Capital is a privately owned, alternative lender specializing in multifamily financing solutions, providing short-term capital and advisory services to middle-market real estate firms. Back by its affiliates – including Electra America, American Landmark Apartments, and Electra Real Estate Ltd. – Electra Capital’s investment strategy is highly disciplined and deeply rooted in decades of industry, financial and property management experience. Visit www.electracapital.com.

The joint venture acquired The Pines at Woodcreek Apartments

Avid Realty Partners and Electra Capital today  today announce that they have formed a joint venture and successfully acquired The Pines at Woodcreek Apartments, a 2015-built and highly amenitized property totaling 330 units in Houston, Texas.

Electra Capital invested $12.2 million of preferred equity into the deal. Samuel Greenblatt, President and CEO of Electra Capital, said, "We like the cost basis of this new construction asset and expect this project to generate reliable returns for our investors."

Craig Berger, Founder & CEO of Avid Realty Partners and Manager of the Joint Venture, said "This is a gorgeous core-plus asset at a value-add price point in a fast-growing sub-market of Houston. We expect to optimize operations and enjoy strong cash flow and appreciation."  

This is Avid Realty Partners' third multifamily property acquisition in Houston, Tex., with its total presence of over 800 units providing scale and operational efficiencies.

Avid Realty Partners worked in cooperation with Acuity Partners to invest $4.1 million of common equity into the deal. Acuity Partners also contributed to other property acquisition responsibilities including Underwriting and Due Diligence. Acuity Partners' CEO Bob Spiegel and President Scott Kurland will assist with a variety of asset management, reporting, compliance, and other ownership duties.

The Pines at Woodcreek Apartments was purchased with an in-place Fannie Mae loan serviced by desk lender Greystone.  The transaction was brokered by the Houston office of Newmark Knight Frank.



About Electra Capital

Electra Capital provides bridge loans, mezzanine loans and preferred equity ranging from $3 million to $30 million. The firm benefits from the combined experience of its executive leadership team, who have collectively closed hundreds of transactions representing over $10 billion over their careers. Electra Capital boasts a national network of experts in acquisitions, underwriting, structuring, closing, and management, enabling us to effectively meet our client’s needs.

About Avid Realty Partners

 Founded by a multi-award-winning Wall Street equities analyst, Avid Realty Partners brings high-powered analytics, risk management, and institutional sophistication to Multifamily real estate investing, allowing us to deliver robust risk-adjusted returns to Investors. We are passionate about owning Multifamily Apartments that deliver the best possible Customer Experience, and pursuing investor profits while maximizing Stakeholder value. Avid Realty Partners has additional deals in the pipeline that it expects to close in 2020.

About Acuity Partners

Acuity Partners is a boutique investment firm that provides access to proprietary investment opportunities in commercial real estate. Our team has been stewarding investments for wealthy individuals and families for over 30 years. As a private equity real estate firm, our goal is to help investors build long-term wealth and passive income streams through a diversified offering of value-add multifamily properties. Acuity Partners' current focus is on multifamily investment properties of 200 units or more. We prefer value-add and workforce housing in the Southeastern and Midwestern. We partner with other experienced sponsors and have invested in over 2,000 units that are valued at over $200 million.

Electra Capital, an alternative lender specializing in flexible, short-term multifamily financing solutions, has closed on a preferred equity investment in Stonebridge at City Park Apartments, a 240-unit garden-style apartment community located in the southwest section of Houston, Texas.

The $5.5 million, three-year investment was structured to allow the sponsor, Strategic Realty Holdings LLC, to update and renovate the asset to an “A” from its current “B” that resulted from neglect and financial distress of the selling entity. Interior and exterior renovations of close to $11,000 per unit will take the rents to the same level as current market comps for B assets.

“Electra Capital’s principals have a long-standing relationship with the sponsor’s partners spanning over 20 years,” said Sam Greenblatt, CEO of Electra Capital. “Electra was able to structure an aggressive deal because of the property’s strong location and demographic growth, coupled with sponsor’s solid track record of execution in the value-add multifamily space.”

Located at 11800 City Park Central Lane, Stonebridge at City Park Apartments consists of one- and two-bedroom apartments ranging in size from 680 square feet to over 1,107 square feet. Community amenities include detached garages, a fitness center, laundry facility, business center and a BBQ picnic area. The property is conveniently located off of Highway 288, within a 15-minute drive of Downtown Houston and the Texas Medical Center, along with other major employers and shopping/dinning/entertainment destinations.

The $5.3MM capital infusion will allow owner to renovate units and pursue entitlements for future apartment development

Electra Capital, an alternative lender specializing in flexible, short-term multifamily financing solutions, has closed on a preferred equity investment in Timber Hollow, a 198-unit apartment community located in Chapel Hill, North Carolina.  

The $5.3 million, three-year loan was structured to allow the sponsor, Eller Capital Partners, to execute on a value-add renovation program and pursue the necessary entitlements for future development of apartments on the site. 

“After conducting a thorough analysis of the Chapel Hill submarket, our team was able to expeditiously and thoroughly complete our underwriting process within a matter of weeks to successfully close the transaction within the sponsor’s expedited time frame,” explained Sam Greenblatt, CEO of Electra Capital. “The Preferred Equity structure allowed us to remain flexible enough to complete the deal in the required timeframe and aggressive enough to meet the needs of the sponsor.”

Added Daniel Eller, CEO of Eller Capital, “Electra Capital worked expeditiously to meet our timeline requirements for a successful transaction. They were efficient in the process and worked with us to find solutions for any obstacles presented. We look forward to working with them in the future.”

Located at 101 Timber Hollow Court, Timber Hollow was built in 1987 and consists of one- and two-bedroom apartments ranging from 547 square feet to over 1,000 square feet. Amenities include 24-hour maintenance, a resident clubhouse, indoor basketball court, lightened tennis court, two-tier resort-style pool, free WiFi at pool area, and a 24-hour professional fitness center. The property is located just a short distance from UNC Chapel Hill and UNC hospitals. 

About Electra Capital

Electra Capital is a privately owned, alternative lender specializing in multifamily financing solutions, providing short-term capital and advisory services to middle-market real estate firms. Back by its affiliates – including Electra America, American Landmark Apartments, and Electra Real Estate Ltd. – Electra Capital’s investment strategy is highly disciplined and deeply rooted in decades of industry, financial and property management experience. Visit www.electracapital.com.