Stone Mountain, Ga.–Emerald Creek Capital funded a $2.1 million loan to QR Capital. The proceeds were used to acquire and renovate Highland Forest Apartments in Stone Mountain, Ga.
Located just outside of Atlanta, Highland Forest features one-, two- and three-bedroom apartments and townhomes. A renovation reserve was established at the closing to upgrade the property and increase occupancy. Once stabilization is reached, it is expected that takeout financing can be achieved through either a HUD or Fannie Mae loan.
Opportunities to purchase REO properties at significant discounts represent a growing trend in the commercial real estate market. Formed last year, private equity firm Emerald Creek Capital is capitalizing on the lack of liquidity in today’s credit environment.
They have been actively providing financing to real estate companies who are looking to take advantage of the many discounted deals in the marketplace. Mark Penna, a managing partner at Emerald Creek, explains, “When we launched our fund we knew that eventually there would be great buying opportunities out there; our fund enables firms to take advantage of them.”