JV Lands $144M Loan for 2 Sun Belt Acquisitions

Aura Bluffview. Image courtesy of Square Mile Capital

Nicholas SunTx RE Partners II has secured $144.2 million in acquisition financing for its purchase of two communities as part of its Sun Belt states strategy.

Square Mile Capital originated the acquisition financing for Nicholas SunTx RE Partners II and Prizma Capital, which acquired Alexan Avondale in Georgia and Aura Bluffview in Texas. The financing was arranged by Walker & Dunlop’s Jon Hyduke.

Located at 2740 E. College Ave. in Decatur, Ga.’s North Druid Hills submarket, Alexan Avondale was completed in 2020. The 270-unit Class A community offers studio, one- and two-bedroom floorplans that range in size from 605 to 1,480 square feet. The units were built with keyless entry and walk-in closets, while select units have private balconies and patios.

The four-story community’s amenities include a fitness center, work-from-home space, clubroom, entertainment kitchen, recording studio, pet spa and parking deck with 462 stalls and electric vehicle charging stations. Alexan Avondale also includes 7,000 square feet of retail space. The new ownership has also rebranded the community to Bellevue at Avondale.

In Dallas, the partnership also acquired Aura Bluffview, a four-story Class A community that was built in 2019. Located at 3900 W. Northwest Highway, Aura Bluffview has 473 units in one-, two- and three-bedroom floorplans ranging from 590 to 1,672 square feet.

The units include private yards and washers and dryers, with garages for select units. The community’s amenities include a fitness center, sky lounge, private clubroom, business lounge, multi-level garage with 752 spaces and two pools. Aura Bluffview was also rebranded by the new owners into Bellevue at The Bluffs.

Tom Burns, principal at Square Mile Capital, said in prepared remarks that these two communities were leased up to stabilization after having been built during the pandemic. He added in his prepared statement that the major economic growth in Dallas and Atlanta will lead to stronger rents in the coming years for these communities. In August, Square Mile Capital, alongside Pacific West Bank, also provided a $142.3 million construction loan for a 318-unit mixed-use project in Miami.

SEEKING OUT SUN BELT ACQUISITIONS

Alexan Avondale. Image courtesy of Square Mile Capital

Nicholas SunTx RE Partners II was created as a collaboration between Nicholas Residential LLC and SunTx Capital Partners LP. The two companies teamed up to invest in attainable, value-add and opportunistic apartment communities in major Sun Belt states like Texas, Georgia, Florida and others. Currently, Nicholas SunTx RE Partners II has approximately $650 million in assets under management.

Ned Fleming, general partner for SunTx Capital Partners, said in prepared remarks that the acquisition of Alexan Avondale is the first step of venturing into new markets across the Sun Belt region of the U.S. The company’s investment strategy alongside Nicholas Residential is to aggressively enter new markets to provide attainable housing to the biggest metros of the Sun Belt states.