By Tudor Scolca
CBRE’s Capital Markets & Structured Finance team secured a $29 million bridge loan for River House Apartments, a 224-unit multifamily community under construction in Baton Rouge, La. The loan was provided by Benefit Street Partners, on behalf of Emanuel Organek and Marc Blumberg of Palmetto Partners. Originally, the company received construction financing from a local bank that failed. The current proceeds will be used to pay off the FDIC and complete construction.
“This transaction shows our ability and resources to work quickly with a seasoned developer, replacing a failed institution and keeping the construction project moving without disruption. It was a great execution among all parties and a competitive process, which ultimately speaks to the capabilities of Benefit Street, a recent entrant to the real estate finance market,” said Jonathan Rice, senior vice president of CBRE Capital Markets, in a prepared statement.
Located at 1480 Nicholson Drive, River House Apartments will include 35,000 square feet of office and 16,000 square feet of retail space. The property will feature studio, one- and two-bedroom floor plans, ranging in size from 720 to 1,051 square feet. According to Yardi Matrix, 29 percent of the property is pre-leased.
Louisiana State University is less than two miles from the property, while downtown Baton Rouge is less than a mile to the north. Interstates 10 and 110 are right next to the property and offer residents access to other areas, including New Orleans, which can be reached in an hour and a half by car.
Water Campus is a 35-acre riverfront research park adjacent to River House Apartments. More than 1.8 million square feet of laboratories, research and commercial space is planned for development, dedicated to the study of coastal restoration and sustainability. Water Campus is expected to provide more than 4,000 jobs.
Image courtesy of CBRE