Dealmaker: NewPoint Real Estate Capital Provides $35M in Multifamily Bridge Financing

NewPoint Real Estate Capital LLC, Plano, Texas, provided a $35.3 million bridge loan to River Rock Capital, New York, for a 198-unit multifamily community.

Siena Round Rock, Round Rock, Texas

River Rock Capital acquired Siena Round Rock, a newly built property in Round Rock, Texas, 27 miles northeast of downtown Austin.

NewPoint worked with Meridian Capital Group Managing Director Judah Hammer and Vice President Daniel Neiss, who represented the borrower. The two-year floating-rate bridge loan included three one-year extension options.

“This was a true ‘time is of the essence’ closing–within 32 days from signed application,” said Brian Skurnik, Managing Director of Proprietary Lending at NewPoint.

Siena Round Rock began leasing in January and reached 95-plus percent occupancy by August. River Rock plans to pursue permanent Agency or HUD/FHA financing once stabilized.

“This transaction represented an opportunity to acquire a near-stabilized property in the rapidly growing Round Rock market, which is one of the more affordable submarkets north of Austin,” said Marc Fried, Managing Principal at River Rock Capital.

Mitchell Hammer, Managing Principal at River Rock Capital, noted leasing velocity topped 40 units per month in May and June. “This is demonstrative of the sheer demand for a rental property of this caliber and price point in the Austin metro,” he said.

Siena Round Rock sits 6.5 miles from Interstate 35, giving residents access to the downtown Austin and north Austin business corridors, home to major employers including Apple, IBM, Tesla, Samsung and Oracle. The property has studio, one- and two-bedroom units with granite countertops, high-speed fiber internet, and Ring video doorbells.

River Rock Capital has since acquired over 5,000 units since forming in 2013.