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Pensam purchases Butterfield Oaks multifamily apartment in Aurora, IL

Pensam, a diversified multifamily real estate investment firm with a portfolio of properties across the country, has announced the purchase of Butterfield Oaks, a multifamily apartment in the Chicago metropolitan area. The 336-unit building, built in 2001, is located in Aurora, Illinois and sits in a beautiful residential neighborhood. The property consists of 21 two-story buildings.

The proposed business plan for the building includes substantial investment for upgraded unit interior and enhanced common areas and amenities. Pensam also plans to establish proactive management practices through the use of rent optimization software to help increase revenue.

“Butterfield Oaks is yet another sign that the multifamily market continued to thrive as 2021 came to a close,” said Hen Shoval, Principal and Director for Investments, Pensam. “This deal is also representative of Pensam’s highly successful Q4 as we adapted to the latest market trends and pursued transactions across the country accordingly. This is the momentum that our firm is continuing to capitalize on during this first quarter of 2022.”

The median household income of the area is more than $100,000 and the building is located near top- rated schools and the Illinois Technology and Research Corridor. The Corridor includes 14 million square feet of office space, 94 million square feet of industrial space and is home to 134,000 jobs. Additionally, the area contains the headquarters or regional centers of many Fortune 1000 companies as well as several colleges, research and scientific institutions. The area also features proximity to Chicago Premium Outlets and retail centers.

Butterfield Oaks rests on 22.7 acres and features a newly renovated clubhouse, a 24-hour fitness center, an outdoor pool, detached garages, an outdoor lounge with fire pit and a dog park.

Source: Real Estate Weekly

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The spotlight may be on Chicago’s single-family market, but multifamily sector is also hot, according to Pensam Capital

While investors and homebuyers’ focus has been on Chicago’s soaring single-family market, multifamily properties in and around the city are also hot.

The trend is driven by migration patterns in Chicago as workers reassess their situations now that the availability of vaccines and booster shots makes living with Covid more manageable, according to an analysis by Hen Shoval, principal and director of Investment at Pensam Capital, a Miami-based real estate investment firm, in REjournals.

“The demand in this area mirrors the broader multifamily trends being seen throughout the entire country, with some residents continuing to demonstrate a heightened interest in the suburbs while others begin returning to the inner city,” said Shoval.

Chicago’s housing market is seeing record activity. The supply of suburban homes earlier in February fell below one month and realtors say sellers can expect $20,000 over asking price. The multifamily sector is setting records as well. A suburban multifamily complex in January sold for $73.5 million, a DuPage County record. Agents at Kiser Group who brokered the most multifamily deals in Chicago last year in January told The Real Deal they expect the multifamily market to stay strong.

“We have about 38 buildings under contract scheduled to close already,” Aaron Sklar, a partner at Kiser Group, said at the time. “We’ve seen a huge push from people around the country kind of flocking to Chicago because of the high cap rates that you see here versus New York.”

Pensam is one such out-of-state buyer. It bought four multifamily properties around Chicago last year and expects activity to continue. Pensam bought a 260-unit stabilized multifamily community in West Dundee, Ill. last summer and more recently bought two properties in Aurora, Ill.

“Against the backdrop of Pensam’s performance in the national multifamily market throughout last year, this is further evidence that the worst of the pandemic’s effects on the U.S. multifamily market are likely behind us,” Shoval said. “Going forward, all signs point to this sector continuing to improve in 2022 and lead the country to pre-pandemic levels of activity and beyond.”

Source: The Real Deal

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Pensam Funding Closes $28.7 Million Construction Loan for a 240-Unit Apartment Development in Lake Worth Beach, Florida

The Advantis Lake Worth apartments will soon break ground after the developers secured a construction loan.

While the deal has yet to close in county records, New Smyrna Beach-based Prospect Real Estate Group and Miami-based Midtown Capital said they obtained a $28.7 million construction loan from Pensam Capital for the project. They are purchasing the 6.4-acre site at 2253 Keast Lane, on the north side of 10th Avenue North, from Miami-based Lake Worth Investment Group LLC.

The developers said it will cost $45 million to build 240 apartments in buildings of three and five stories. Amenities would include a clubhouse, a pool, grilling stations, a game room, a fitness room, and coworking space for residents.

“We worked diligently with Midtown Capital and the city to get the plans approved for this property,” said Prospect Real Estate Development Group Chairman Richard Zahn, Sr. “The location is unparalleled and the completed project will offer residents of Palm Beach a new, unique housing option with plenty of amenities and an unmatched location.”

It’s located about five blocks west of the 10th Avenue North exit of Interstate 95. Lake Worth Beach is just south of the employment centers in West Palm Beach.

The land was annexed into Lake Worth Beach in 2016.

BBC Construction, a subsidiary of Prospect Real Estate, is the general contractor. Advantis Lake Worth is expected to be completed by spring 2024.

Miami-based MSA Architects designed the project.

Meanwhile, Prospect Real Estate has an apartment complex planned in Fort Lauderdale’s Flagler Village neighborhood.

Source: South Florida Business Journal

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Ray Cleeman will speak at the Crittenden Real Estate Finance Conference in Miami on September 23rd, 2021

Ray Cleeman, Head of Capital Markets & Lending, will speak at the Crittenden Real Estate Financing Conference on September 23rd in Miami, FL.

Ray’s panel, titled “Building the Modern Capital Stack”, fitting different financial instruments into the capital stack, including: Ground leases, C-Pace, Credit linked financing, and Convertible debt.

Other participants will include:

  • David A. Cohen, Managing Director/Chief Production Officer – National Bridge Lending Team, Ready Capital Corporation
  • David Eyzenberg, President, Eyzenberg & Company

For more information, visit Crittenden Real Estate Finance

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Pensam Residential Acquires 367-Unit Multifamily Apartment Community in Schaumburg (Chicago), IL

Miami, FL — April 13, 2019 –  Pensam Residential, a national multi-housing owner and operator, announced today that through an affiliate it has acquired Legend Park Apartments, a 367-unit multifamily apartment community located in Schaumburg, Illinois.

Legend Park was built in 1973 and consists of seven garden-style buildings situated on a low-density 22-acre site.  The property features a combination of one-, two- and three-bedroom units that average 816 square feet.  Community amenities include a 6,000 square foot clubhouse, outdoor swimming pool, fitness center, tennis court, sand volleyball court, children’s playground, laundry facilities and storage rooms.  Prior to Pensam’s acquisition, the property had been owned and operated by the same party since 2002 and is well positioned for value-add enhancements such as interior, exterior and amenity upgrades.

The Property’s location in Schaumburg, an affluent Chicago suburb, offers residents convenient access to major employers, a top-rated school district and direct public transit to downtown Chicago.  Schaumburg is Illinois’ second largest economic center and home to major tech companies and employment drivers including Motorola, Zurich American Insurance, IBM, Verizon Wireless, Experian, OptumRx and Genworth Financial Capital. In 2018, MONEY Magazine ranked the Village of Schaumburg the Best Place to Live in Illinois.

“Legend Park is a strong addition to our Chicago portfolio and a prime example of the type of acquisitions we continue to seek,” commented Michael Stein, Founding Partner of Pensam Residential.  “Pensam, together with our property management partner BH Management, has a proven track record of success owning and managing rental properties in the Chicago metro area.  Legend Park presents an opportunity to further this.”

Legend Park marks Pensam’s 7th multifamily investment in the greater Chicago metropolitan area. Pensam continues to actively invest in the multifamily properties throughout the United States, both through direct equity investments and as a leading preferred equity provider.

About Pensam Residential

Headquartered in Miami, Pensam Residential is a multi-housing owner and operator which manages a growing portfolio of properties across the United States.

Pensam encompasses all aspects of real estate property ownership and investment, including acquisition, financing, construction, repositioning, and management.  Pensam has invested in over 37,000 units across 131 properties.  For more information visit www.pensamresidential.com.

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Pensam Residential Provides Preferred Equity for the Recapitalization of a 1,383-Unit Multifamily Housing Portfolio

Miami, FL — April 10, 2019 –  Pensam Residential, a national multi-housing owner and operator, announced today the closing of a preferred equity investment to facilitate the recapitalization of a  four-property 1,383-unit multifamily housing portfolio located in Pennsylvania & Kentucky.

Pensam’s preferred equity investment was structured behind long-term Fannie Mae senior debt financing. The recapitalization of the portfolio presented complexities such as a very short closing timeline, cross-collateralization of loans, and recycling of existing entities. Pensam’s ability to understand the sponsor’s goals and navigate Fannie Mae’s guidelines were critical in delivering a quick and smooth execution.

The four garden-style multifamily apartment communities have been family-owned for over a decade, and are well positioned for physical and operational improvements to support the sponsor’s value-add strategy. The properties benefit from excellent suburban locations in stabilized markets within the Pittsburgh, PA; Lexington, KY; and Cincinnati, OH metropolitan areas.

“We are excited to begin this partnership and expand our portfolio of quality preferred equity investments” said Michael Stein, Founding Partner of Pensam Residential. “Pensam was able to cater to the sponsor’s unique needs, which required flexibility and creativity.”

About Pensam Residential

Headquartered in Miami, Pensam Residential is a multi-housing owner and operator which manages a growing portfolio of properties across the United States.

Pensam encompasses all aspects of real estate property ownership and investment, including acquisition, financing, construction, re-positioning, and management.  Pensam has invested in over 35,000 units across 125 properties.  For more information visit www.pensamresidential.com.

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Pensam Residential Closes Preferred Equity Investment for the Acquisition of a Class-A Multifamily Property in Bloomfield, NJ

Miami, FL — February 5, 2019 – Pensam Residential, a national multi-housing owner and operator, announced today its recent closing of a preferred equity investment which facilitated the sponsor’s acquisition of a 361-unit Class-A multifamily apartment community located in Bloomfield, New Jersey.

The sponsor is a New Jersey-based full-service real estate investment company and a repeat Pensam sponsor. Pensam Residential’s investment was structured behind Fannie Mae senior financing.

The community consists of an eight-story, mid-rise Class-A building with 361 luxury loft-style apartments, located on a 5.3 acre site. The property was originally constructed in 1916 as a factory for General Electric Co., and redeveloped into residences in 2013 to cater to the growing demand for transit-oriented luxury rental housing in Bloomfield, NJ, which is a small, densely populated town located approximately 15 miles west of New York City. Bloomfield is located in Essex County, New Jersey’s third most populous county adjoining New York City, Pennsylvania, Westchester and Rockland counties.

The property is situated within a 5-minute walk of the New Jersey Transit Watsessing Station which offers 30-minute, one-seat service to Manhattan in just two stops. Additionally, the property’s close proximity to Bloomfield Avenue, Bloomfield’s main retail destination, offers residents easy access to a vibrant downtown with numerous bars and restaurants. The property also offers residents the largest square-footage of amenities in the submarket, boasting a two level 4,000 SF fitness center, 20-seat movie theater, rooftop sundeck, 24-hour attended lobby and convenience store, community room with billiards, outdoor event patio, penthouse-level Wi-Fi café, dog park, individual storage rooms, and a three-level covered parking garage.

Floor plans at the property consist of a combination of studios, one, and two-bedroom luxury loft-style units averaging 838 square feet.  Unit features include 17-foot ceilings, 13-foot windows, original architectural detail, exposed columns and beams, concrete floors, energy-efficient systems and gourmet kitchens with stainless steel appliances, quartz counter tops, glass tile backsplash, and custom cabinetry.

“We are very pleased with this transaction and the relationship we have been able to establish with this sponsor,” said Michael Stein, Founding Partner of Pensam Residential. “Pensam remains focused on delivering flexible capital solutions, establishing programmatic capital relationships, and partnering with high quality sponsors looking to grow their multifamily portfolios.”

About Pensam Residential

Headquartered in Miami, Pensam Residential is a multi-housing owner and operator which manages a growing portfolio of properties across the United States.

Pensam encompasses all aspects of real estate property ownership and investment, including acquisition, financing, construction, repositioning, and management.  Pensam has invested in over 35,000 units across 125 properties.  For more information visit www.pensamresidential.com.

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Pensam Residential Invests in 11-Property Senior Housing Portfolio

Miami, FL — January 9, 2019 – Pensam Residential, a national multi-housing owner and operator, announced today the closing of a senior equity investment to recapitalize an 11-property portfolio consisting of 1,368 active-adult apartment units located across the Northeast and Midwest United States.

Pensam’s investment will facilitate funding the construction and stabilization of the portfolio, currently under various stages of development. The transaction marks Pensam’s second investment with the sponsor, a full-service national real estate developer and operator of active adult apartment communities with over twenty years of experience.

“We are pleased to invest with a top tier sponsor in the active adult housing sector.  This was a complex transaction involving multiple construction lenders in diverse geographic areas,” said Michael Stein, Founding Partner of Pensam Residential.

About Pensam Residential

Headquartered in Miami, Pensam Residential is a multi-housing owner and operator which manages a growing portfolio of properties across the United States.

Pensam encompasses all aspects of real estate property ownership and investment, including acquisition, financing, construction, repositioning, and management.  Pensam has invested in over 35,000 units across 125 properties.  For more information visit www.pensamresidential.com.

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Ray Cleeman to Speak at AltsMIA Conference in Downtown Miami on November 6, 2018

Ray Cleeman, Principal at Pensam Funding, will speak at the AltsMIA 2018 Conference in Downtown Miami on Wednesday, November 6, 2018.  The topics of conversation will revolve around alternative investment opportunities and private equity investing targeted towards family offices, high net worth individuals, institutions and pension groups. AltsMia brings together leading experts from across the alternative investment spectrum, including private equity, venture capital, real estate and hedge funds.  Ray’s panel, moderated by Simcha David, Partner of EisnerAmper, will discuss the impact of current trends in private equity.

Other speakers at the conference will include, among others:

  • John Calamos Sr., Global Chief Investment Officer, Calamos Investments
  • Marc Bell, Chairman and Co-Founder, Terran Orbital
  • Ray Nolte, Chief Investment Officer, Skybridge
  • Garth Friesen, Chief Executive Officer, Ill Capital Management
  • Jeffrey Krasnoff, Chief Executive Officer, Rialto Capital
  • Michael Falk, Chairman, Managing Partner, Comvest Partners & Co-Trustee of Michael and Annie Falk Foundation
  • William Collatos, Founder, Spectrum Equity
  • Maria Elena “Mel” Lagomasino, Chief Executive Officer, WE Family Offices
  • Charmel Maynard, Associate Vice President and University Treasurer, University of Miami
  • Chris Gizzard, Vice President, Bayshore Capital
  • Steven Brod, Chief Executive Officer, Crystal Capital
  • Roman Khlupin, Chief Investment Officer, Strenta Investment Management
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Pensam Funding Closes $7 Million Bridge Loan, Collateralized by a Multi-Property Portfolio in Miami Beach, FL

Miami, FL – April 20, 2018           Pensam Funding, a direct real estate lender and affiliate of Pensam Capital, a fully integrated real estate investment platform, announced today that it recently made a $7 million bridge loan secured by a portfolio of properties, all located within the prestigious Venetian Islands overlooking Biscayne Bay, in Miami Beach, FL. The two-year fixed rate loan was structured to meet the Borrower’s specific requirements, including collateral release provisions that enable the Borrower to sell individual assets from the portfolio during the term of the bridge loan.

“This is another example of Pensam Funding’s continued activity in the South Florida market and our focus on providing flexible capital to our borrowers,” said Michael Stein, Founding Partner. “This loan illustrates Pensam Funding’s ability to think outside the box and provide financing solutions to meet the unique needs of our clients.”

Pensam Funding is focused on providing credit solutions for multifamily properties, and also considers lending opportunities in senior housing, manufactured housing, land and other real estate sectors.

 

About Pensam Funding and Pensam Capital

Headquartered in Miami, FL, Pensam Funding, an affiliate of Pensam Capital, is a private direct real estate lender which provides flexible and rapid capital solutions to experienced real estate sponsors across the capital stack including first mortgages, mezzanine debt, subordinate debt and preferred equity. For more information, visit www.pensamfunding.com.

Pensam Capital is a privately owned real estate investment platform.  Through its various affiliates, it owns or controls over 25,000 multifamily apartment units and invests in the multifamily sector through equity, preferred equity and debt structures. For more information, visit www.pensamcapital.com.