Pensam has closed on a $7.6 million preferred equity investment for the recapitalization of The Elise, a 341-unit apartment community located in Dallas, Texas. In connection with the transaction, the sponsor, Windmass Capital, arranged senior financing with a senior mortgage lender and sought out Pensam’s preferred equity solution to provide incremental capital to support the refinancing.
“With the rapid increase in interest rates, proceeds from senior loans have been dramatically compressed, making Pensam’s various capital and lending solutions a vital source of financing for multifamily owners,” said Ray Cleeman, Head of Capital Markets and Lending at Pensam. “In this transaction, Pensam was able to increase total loan proceeds up to 75% of the capital stack, a significant increase above the senior Mac loan.” Mr. Cleeman also added that “we have a deep pool of capital ready to deploy for these types of scenarios and are seeing a significant increase in demand for our lending solutions, including both preferred equity and mezzanine loans that go behind other senior lenders including the Agency Lenders, commercial banks, life companies and debt funds.”
The Elise was built in 1987 and is located at 1720 John West Road. Renovated units at the property feature granite countertops, new black appliances, subway tile backsplash, faux wood floors, new cabinet faces, upgraded fixtures and hardware, new paint, and resurfaced cabinets. Amenities include a fitness center, resort-style swimming pool, gated access, beautiful landscaping, and on-site/on-call maintenance. Pensam’s investment will support the sponsor’s continuing capital improvements plan to incorporate additional value-add amenities at the property for the enhancement of the resident experience.