3650 REIT ("3650"), a nationwide commercial real estate investment firm originating and servicing portfolio loans for relationship borrowers in addition to other strategic investments, today announced that it has invested in two portfolio transactions involving assets worth more than $1.2 billion.
Most recently, 3650 provided $93.5 million of preferred equity to recapitalize a 12-property portfolio (the "Southern Portfolio") with more than 3,500 residential apartments located throughout the Southeast U.S. 3650's preferred equity investment is subordinate to existing Fannie Mae senior mortgage loans. The Southern Portfolio is owned by a joint venture between Onyx Partners, led by Jeremy Rieder, and David Werner Real Estate. 3650's capital contribution to the Southern Portfolio will recapitalize existing preferred equity and provide additional capital for renovation of the subject properties.
3650 REIT also recently provided $89 million of preferred equity to RREAF Holdings LLC for the acquisition of three separate multifamily portfolios totaling 21 properties with more than 4,000 residential apartments across the Southeast U.S. (the "Transcoastal Portfolio").
These two investments mark the first two significant deals from 3650's Preferred Equity Investment program, which is led by 3650 REIT Managing Director Michael Fleischer.
"In light of the ever-shifting landscape of commercial real estate and its asset classes, it is critical that our investment strategy constantly evolve to reflect current market conditions," said 3650 co-founder and managing partner Jonathan Roth. "The multifamily housing market in the Southeast and Sun Belt regions remain supply constrained, and these transactions reflect 3650's commitment to investing in attainable housing and helping to improve the existing housing stock in these markets. We are proud to be working with David Werner and Onyx Partners on the Southern Portfolio, and RREAF Holdings on the Transcoastal Portfolio as we continue to expand our footprint in the residential housing market."
The Southern Portfolio totals more than 3,500 multifamily apartment units including The Saulet, one of the largest multifamily properties in the city of New Orleans, Louisiana, spanning 703 units.
Amenities currently featured across the Southern Portfolio generally include high-end appliance packages, nine-foot-plus ceilings, in-unit washers and dryers, balconies, walk-in closets, swimming pools, playgrounds, clubhouses, picnic areas with grills, fitness centers, business centers and storage units. Some communities feature tennis, basketball and volleyball courts, nature trails, dog parks, garage parking and gated access.
David Werner, founder of David Werner Real Estate, stated, "We are pleased to announce the closing of the recapitalization of the Southern Portfolio with 3650 REIT. The 3650 team was instrumental to getting this extremely complicated multi-party transaction closed, and we look forward to this being our first of many transactions together."
Drew Anderman and Eddie Haber of Meridian Capital Group arranged the Southern Portfolio recapitalization.
3650 REIT manages in excess of $5 billion in loans and investments across its Bridge and Event-Driven (BED) lending platform, Stable Cash Flow (SCF) lending platform, Single Asset Single Borrower (SASB) program and Preferred Equity Investment (PEI) program.
About 3650 REIT
3650 (pronounced "Thirty-Six Fifty") REIT is a nationwide commercial real estate investment firm originating and servicing portfolio loans for relationship borrowers in addition to other strategic investments. 3650 REIT's highly differentiated investment process, national scale, vertically integrated platform and Rated Special Servicer status enable it to deliver tailored financing solutions, high-touch service and reliable, customer-focused outcomes. Additionally, 3650 REIT's ability to retain the risk on each investment allows it to closely manage its portfolio while incorporating ESG best practices. Co-Founders and Managing Partners Toby Cobb, Justin Kennedy and Jonathan Roth have played leading roles in the evolution of the CRE debt markets. Headquartered in Miami, Florida with offices in New York, Los Angeles, Dallas, Atlanta and Nashville. For more information, visit: www.3650REIT.com.
THIS INFORMATION DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, AN INTEREST IN ANY JURISDICTION.