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Lument Provides $23.4MM Bridge Loan for Acquisition of Multifamily Community in Georgia

November 12, 2021, 07:44 AM
Filed Under: Real Estate

Lument provided a $23.4 million proprietary bridge loan to fund the acquisition and renovation of The Park at Netherley Apartments, a 294-unit multifamily community located in Union City, Georgia, a southeastern suburb of Atlanta. The sponsor is Crown Bay Group, a repeat Lument client and experienced multifamily operator in Atlanta and the Southeast. Ted Nasca, managing director, led the transaction for Lument.

"Collaborating with Crown Bay Group is always a pleasure, as they consistently complete their value-add projects ahead of schedule and over-deliver to their investors," said Lument's Nasca. "We are thrilled to have helped them with their latest success."

This acquisition marks the seventh successful collaboration between Lument and Crown Bay Group, the latter of which has acquired nearly 3,200 units in the Atlanta area since 2017.

"Lument was patient, communicative, and flexible as they worked with us to ensure the bridge loan structure was a good match for the real estate and our business plan," said Steve Firestone, CEO at Crown Bay Group. "Once again their team delivered an optimal outcome."

Originally constructed in 1988 and partially renovated in 2019 and 2020, The Park at Netherley consists of 32 buildings housing, 126 one-bedroom units, 130 two-bedroom units, and 38 three-bedroom units. The $1.4 million in immediate renovations will add community features such as additional grilling stations, a dog park, and a fountain to the community's lakefront setting.

"We arrived at a successful solution that allowed for renovation proceeds to fund exterior updates and improvements while delaying interior updates until the timing was more favorable," said Lument's Nasca. "Further, the financing structure features a three-year term with extensions, creating flexibility as Crown Bay Group renovates units and executes its business plan."

ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate.

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