Newnan, GA. Pensam, a diversified multifamily real estate investment firm, has made a preferred equity investment in a portfolio of two properties located in Newnan, Georgia, one of the fastest growing submarkets in the United States. The properties, Woodland Commons and 60 Jane Lane, were acquired by TriWest Multifamily, a premier real estate investment and development firm focused on multifamily investments throughout the United States.
Both garden-style apartment communities contain 114 units, with Woodland Commons being built in 2002 and 60 Jane Lane in 1986. At closing TriWest assumed existing Freddie Mac financing, arranged a supplemental loan from Freddie Mac, brought in new equity and rounded out the capital stack with Pensam’s preferred equity investment.
“These two properties represent an exciting opportunity for Pensam to invest with a strong sponsor, in a rapidly growing submarket with a value-add plan that was easily supportable,” said Ray Cleeman, Principal, Head of Capital Markets and Lending. “This investment is a perfect example of how our flexible Preferred Equity program can accommodate a wide range of investment goals. In this transaction we were able to provide capital to a sponsor assuming Agency loans and seeking to unlock incremental liquidity in their assets as they build to a long-term improvement thesis.”
Both properties will undergo significant, multimillion-dollar value-add capital programs with a focus on driving rental premiums to current property rates. Improvements will include unit interior upgrades such as granite countertops, new cabinets, stainless steel appliances, vinyl wood plank flooring and updated fixtures and backsplash. Additionally, the properties will benefit from upgrades to property amenities and exterior and common areas, as well as the addressing of some deferred maintenance.
About Pensam
Pensam is one of the country’s largest private real estate investors and capital providers specializing in the vibrant U.S. multihousing sector. Founded in 2009 by a team of seasoned real estate professionals, the company meets the country’s needs for alternative flexible capital. Pensam has invested in over 46,000 units spanning across 164 communities and 28 states, both in primary and secondary markets. As an integrated firm, the company is also uniquely positioned to leverage the synergies of its three service lines – equity, debt and development.
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