Meridian Capital Group, America’s most active dealmaker, arranged $32 million in acquisition financing for a multifamily portfolio located in Memphis, TN on behalf of a joint venture between Menora Financial and DJ Acquisitions.
The 36-month loan, provided by a credit union, features a fixed rate of 5.25% and a 30-year amortization schedule. Meridian Managing Director, Gershon Friedman, and Underwriter, Yehuda Rubelow, who are based in the company’s Skokie, IL office, negotiated the financing for this transaction.
The portfolio, which consists of Emerald Park, Emerald Pointe, Emerald Square, Emerald Ridge, Peak Grahamwood, and Peak Pinebrook, totals 1,240 one-, two-, and three-bedroom units located in the Hickory Hill, East Winchester, and Berclair submarkets of Memphis, TN. The sponsor assembled the portfolio, which included four purchase contracts from two sellers, with plans to reduce costs through centralized operations and invest capital towards the remodeling of units. The properties currently have stable occupancy and include amenity packages that vary by location, though many feature swimming pools, onsite laundry facilities, security systems, and fitness centers.
“Meridian negotiated a 90% loan-to-cost deal over the course of 36 months that will allow for 80% loan-to-purchase and an earnout of up to 90% of all-in cost as the properties reach predetermined benchmarks,” said Mr. Rubelow.
Located on the Mississippi River in southwest Tennessee, Memphis is famous for the blues, soul, and rock music that originated there by artists including Elvis Presley, B.B. King, and Johnny Cash. It is the second largest city in the state with more than 650,000 residents.
Founded in 1991, Meridian Capital Group is America’s most active deal maker and one of the nation’s leading commercial real estate finance, investment sales and retail leasing advisors. In 2017, Meridian closed over 3,000 transactions across more than 200 unique lenders and sold nearly $1 billion in commercial property. Meridian represents many of the world’s leading real estate investors and developers and the company’s expansive platform has specialized practices for a broad array of property types including office, retail, multifamily, hotel, mixed-use, industrial, and healthcare and senior housing properties. Meridian is headquartered in New York City with offices in New Jersey, Maryland, Illinois, Ohio, Florida and California.