Dealmaker: Electra Capital Provides $10M in Equity Investments

Electra Capital, Lake Park, Fla., closed nearly $10 million in preferred equity investments for two Texas multifamily communities.

In College Station, Electra made a $4 million, 36-month preferred equity investment structured behind a Freddie Mac first mortgage for 192-unit community Element at University Park. The structure allows the sponsor to purchase the property and complete planned renovations, including interior renovations to each unit and exterior renovations to the buildings and grounds.

Berkadia Senior Managing Director Mitch Sinberg Managing Director Brad Williamson secured the Freddie Mac senior loan for One Real Estate Investment, Miami. Berkadia’s Joint Venture Equity and Structured Capital Group in New York, led by Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick, lined up Electra Capital’s equity investment.

Built in 2000, Element at University Park at 4475 Carter Creek parkway is less than 10 minutes from Texas A&M University–the largest public university in the country with nearly 70,000 students.

Electra Capital also closed on a preferred equity investment in Stonebridge at City Park Apartments, a 240-unit garden-style apartment community located in southwest Houston. The $5.5 million, three-year investment was structured to allow sponsor Strategic Realty Holdings LLC to update and renovate the asset to a Class A property from its current Class B status. Interior and exterior renovations approaching $11,000 per unit will take the rents to the same level as current market comps for B assets.

“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,” said Electra Capital CEO Sam Greenblatt.

Electra Capital provides bridge loans, mezzanine loans and preferred equity in the range of $3 to $30 million.