Pensam Capital, a diversified multifamily real estate investment firm with a portfolio of properties across the country, thrived during Q3 2021, executing $98.1 million in deals across six construction loans, preferred equity investments and bridge loans. This highly successful third quarter performance reflects the growing multifamily sector across in the United States, which has been gaining significant momentum following a turbulent and unpredictable 2020.
The bulk of Pensam’s third quarter transactions are four preferred equity deals executed throughout the country encompassing over 1,100 total multifamily units in Indianapolis, Chicago, Atlanta and Houston in communities constructed between 1967 and 2019. These chosen markets are demonstrative of a nationwide trend; as the country exits the pandemic era, the multifamily sector is continuing to thrive in suburban areas. This continued demand comes alongside the beginnings of notable migration back to urban areas as businesses bring workers back to the office or embrace hybrid work models.
Specific indicators of this trend can be seen throughout the country. In areas such as Chicago, urban completions continued to be outpaced by suburban deliveries in the third quarter of 2021. Pensam Capital’s further activity in suburban markets in Q3 also points to the continuation of this demand, including a $35.3 million construction loan for a 230-unit multifamily community in Lake Worth, Florida, with a 77 percent loan-to-cost ratio.
Finally, outside of the multifamily market, Pensam was active in the retail/commercial sector, transacting a $40 million bridge loan in Miami. This mixed-use office + retail deal comes at a time when Miami’s office-using employment rate is seeing similar growth, with this sector increasing by 23,600 jobs over the past 12 months. Similarly, South Florida’s retail sector saw increases in both absorption and asking rates per square foot in Q3 2021 as well as a decrease in vacancy since Q2 2021.
“The country’s economic recovery has remained steady since the beginning of 2021,” said Hen Shoval, Principal and Director of Investments at Pensam. “The multifamily sector continued to thrive throughout the year, demonstrating a trend that we anticipate will continue into 2022. While some areas of the country have not yet reached pre-pandemic levels, our team remains proud of our ability to identify where deals are currently being made and where they need to be made in the future. These insights will help spur the multifamily market to greater heights next year as we enter a more varied and unique residential landscape.”
About Pensam Capital
Pensam Capital 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, Pensam meets the country’s needs for alternative flexible capital in a market challenged by limited liquidity. Pensam’s investment portfolio currently stands at over $3 billion and includes properties in primary and secondary markets. As an integrated firm, Pensam is uniquely positioned to leverage the synergies of its three service lines – equity, debt and development.
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