Capital One provided a $34.0 million SOFR-based floating-rate bridge loan for the acquisition of ReNew Carmichael, a 197-unit apartment community in Carmichael, California, a suburb of Sacramento. The sponsor, Trion Properties, is a Los Angeles-based private equity investment company.
“Our bridge-to-agency program was the ideal solution for this asset, giving Trion the time it needs to prepare it for agency financing,” said Capital One Senior Vice President of Agency Finance Andrew Kwok, who originated the transaction.
This was the sixth transaction the Capital One team has completed with Trion and its equity partners in the last 15 months. The interest-only loan has a three-year term with the option of two one-year extensions.
“Capital One’s bridge-to-agency offering has driven significant impact for clients with assets requiring time-sensitive to moderate rehab,” said Capital One Senior Vice President Steve Klufas, who closed the loan on behalf of the bridge-to-agency program. “We were pleased to work with Trion Properties, which has a strong track record and experience in this space.”
ReNew Carmichael opened in 1973. As part of its renovation, Trion will install quartz countertops and sinks, stainless steel appliances, kitchen cabinets, washer/dryers, and upgraded showers and tubs. The new commitment also includes funds for unit and common area renovations.
“The Capital One team truly understands our investment strategy and was able to tailor an accretive debt structure to maximize returns,” said Max Sharkansky, one of Trion’s two managing partners. “They’ve earned their place as one of our go-to lenders.”
Trion Properties focuses on properties in need of moderate to heavy rehab on a mid- to long-term investment horizon. Its goal is to maximize investor returns by increasing net operating income throughout the holding period through a hands-on management style, intensive renovation, and aggressive lease-up.
Farhan Mahmood, Trion’s Managing Director of Acquisitions, added, “Capital One’s bridge-to-agency program is a game changer.”
In 2021, Capital One completed 26 transactions with 14 different clients through its bridge-to-agency program, totaling about $1.39 billion.