ACRE Provides $104M Financing for 3 Communities

The loans will go toward refinancing and renovating properties in Kentucky, North Carolina and Indiana.
Main and Clay. Image courtesy of Asia Capital Real Estate

Asia Capital Real Estate (ACRE) has provided $104 million in financing for three communities in high-growth markets in the Southeast and Midwest U.S. The loans were provided through ACRE’s debt fund, ACRE Credit, and will be used to refinance and renovate the properties in Louisville, Ky.; Arden, N.C.; and Indianapolis.

In Louisville, ACRE provided a $43 million loan to the joint venture between Bristol Development and Federated Insurance for its Main & Clay community. The three-year loan agreement has a 70.6 percent loan-to-value ratio and includes two one-year extension options for the seven-story multifamily project. Located at 633 E. Main St., the 269-unit mixed-use community was delivered in 2018 and is 94 percent occupied.

ACRE’s batch of loans also included a $21 million loan in debt capital to David Shermano, the property owner of Williamsburg North in Indianapolis. The three-year loan with 70.6 percent loan-to-value ratio includes two one-year extension options for the 318-unit community. Located at 4430 Brookline Court, Williamsburg North was built in the 1960s and is currently 97.2 percent leased.

ACRE also provided a $40 million loan to Madison Capital Group for its Burton Hills community. The two-year loan agreement has a 70.1 percent loan-to-value ratio and has three one-year extension options. Located at 105 Sweeten Grass Hill, the three-story Class A apartment community offers 232 units and is 94.8 percent occupied.

Previously, ACRE also provided a $34 million short-term bridge loan through its ACRE Credit debt fund to a 139-unit mixed-use community in Durham, N.C.

FOCUSED ON HIGH-GROWTH MARKETS

Daniel Jacobs, head of origination at ACRE, said in prepared remarks that the three communities were located in high-growth markets and were ideal fits for the firm’s lending strategy.

Jacobs told Multi-Housing News that ACRE Credit’s reach was national but focused on high-growth secondary markets that have strong population, net migration and job growth, while also performing well through the COVID-19 downturn.

According to the Indiana Business Review, the Indianapolis-Carmel metro area is slated to return to pre-pandemic employment levels by the close of this year, as well as see some increase in new job creation. While Indianapolis office space might need a bit longer to recover to full swing, the multifamily sector will likely be quicker to benefit from the economic growth ahead.

In addition to the three communities, Jacobs told MHN that ACRE is also focused on the markets of Tampa, Orlando, Charlotte, Raleigh-Durham, Austin, Dallas, Atlanta, Denver and Phoenix markets.