Debt financing will support Class A and B apartments in high-growth markets with solid population growth and thriving workforces
NEW YORK–(BUSINESS WIRE)–Asia Capital Real Estate (ACRE), a global real estate private equity firm, today announced it has closed loans totaling $104 million for three multifamily communities in Louisville, Kentucky; Arden, North Carolina; and Indianapolis, Indiana.
Issued through ACRE’s debt fund “ACRE Credit”, the loans will aid in the refinancing and renovation of the properties, all located in high-growth markets experiencing robust population growth and increased job opportunities for a thriving workforce.
They loans delivered by ACRE are as follows:
- $43 million to joint venture partners Bristol Development and Federated Insurance for their seven-story multifamily property ‘Main & Clay’ in Louisville, Kentucky. Located at 633 East Main Street, the development is a 269-unit mixed-use building delivered in 2018 and is 94 percent occupied. Louisville and surrounding neighborhoods continue to benefit from increased housing demand as population sizes gradually increase as a result of corporate entities increasingly planting their home flags in the region. The upscale community caters to working professionals and includes amenities such as a heated saltwater swimming pool, a clubhouse, bike storage, a fitness center and a pet spa. The 3-year loan agreement carries a 70.6 percent Loan-to-Value (LTV) ratio and includes two one-year extension options.
- $40 million to North Carolina-based Madison Capital Group for its Class A, 232-unit ‘Burton Hills’ apartment community in Arden, North Carolina. Located at 105 Sweeten Grass Hill, Burton Hills is a three-story luxury property that was delivered in April 2021 and is currently 94.8 percent occupied. The development is just five minutes away from the bustling city of Asheville, which has seen an influx in population growth in the past several years as both retiring Baby Boomers and millennials migrate to the metropolitan area, drawn to the city’s unique mountain and outdoor culture. The apartments include a clubhouse; a saltwater swimming pool accented by tanning decks and a cabana; a fitness studio; a dog park and outdoor social spaces. The 2-year loan agreement for the property includes three 1-year extension options and a 70.1 percent LTV ratio.
- $21 million in debt capital to finance the reimagining of the 318-unit ‘Williamsburg North’ community in Indianapolis. The property, located at 4430 Brookline Court, was built in the 1960s and is currently 97.2 percent leased. Community amenities include a clubhouse, a dog park, a fitness center, a swimming pool with a sundeck and picnic areas with BBQ grills. ACRE inked a deal for 3-year loan teams with David Shemano, a real estate investor and owner of Williamsburg North. The loan includes two 1-year extension options with a Loan-to-Value (LTV) ratio of 70.6 percent.
“We are pleased to provide debt capital to help support these properties in the exciting, high-growth markets of Louisville, Asheville and Indianapolis. Like many areas in the Southeast and Midwest, all are experiencing sizable population growth supported by strong market fundamentals and job demand, as residents increasingly move away from many of the country’s major gateway cities in search of more affordability,” said ACRE Head of Origination Daniel Jacobs. “Each of these developments represented an ideal fit for our firm’s targeted lending strategy, and we look forward to identifying even more opportunities to fuel the success of other multifamily properties around the country.”
Through a series of equity and debt funds, ACRE manages more than $1.8 billion in assets across private real estate investments and loans. The firm specializes in value-add, multifamily opportunities and invests in workforce and affordable housing assets in strategic growth markets. ACRE’s unique approach to managing its diverse portfolio of multifamily properties includes an intentional focus on creating added value for residents that extends beyond the four walls of their homes. By establishing a sense of community among residents through socially impactful investments and sustainable green measures, ACRE effectively improves tenant retention and generates stable, cash-flowing properties.
About Asia Capital Real Estate (ACRE)
Founded in 2011, Asia Capital Real Estate (ACRE) is a global real estate private equity firm managing capital for institutional and family office investors through a series of private equity and debt funds and currently has more than $1.8 billion in assets under management. Since its inception, ACRE’s acquisition, development and lending efforts have spanned 22,000 units across 78 properties in 33 cities. ACRE’s strategies focus on direct real estate equity and credit investments and are concentrated in high growth markets in the United States, with additional properties currently in development in Southeast Asia and the United Kingdom. ACRE manages a global multifamily housing portfolio with offices in Atlanta, New York and Singapore.
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