Sentral, ICONIQ Land $525M Refi
This marks the first single-asset, single-borrower CMBS loan to refinance flexible apartment properties.
A joint venture between ICONIQ Capital and Sentral has obtained $525 million for a six-asset, 1,790-unit portfolio. Deutsche Bank and Goldman Sachs provided the note, a first-of-its-kind, single-asset, single-borrower CMBS loan to refinance flexible apartment properties.
Newmark arranged the financing, while Gibson Dunn and Latham & Watkins also advised on the transaction. The financing terms allow for flexible management and varying durations of stay to enhance property performance.
Sentral operates the communities, which have 25 percent of the units under a flexible living strategy and were previously refinanced between 2019 and 2022, according to Yardi Matrix information. The properties include:
- Sentral Wynwood, a 175-unit property in Miami, completed in 2020
- Sentral SoBro, a 299-unit community in downtown Nashville, Tenn., that came online in 2022
- Sentral Michigan Avenue, a 479-unit, LEED Silver-certified property in Chicago that was delivered in 2019
- Sentral East Austin 1614, a 2019-completed community totaling 115 units
- Sentral East Austin 1630, a 2018-delivered property featuring 139 units
- Sentral Union Station, a 579-unit, LEED Gold-certified property also dating back to 2018
Newmark Co-President of Debt & Structured Finance Jonathan Firestone and Vice Chairman Bill Fishel arranged the financing.
Short-term rentals remain steady
The U.S. short-term rental sector has been growing over the past couple of years, shifting from a vacation perspective to a more mainstream form of accommodation. However, that growth has diminished in the last couple of months.
In September, the number of active short-term rental listings exceeded 1.7 million across the U.S., below the 1.8 million forecasted before the pandemic, according to AirDNA. Supply growth clocked in at 3.9 percent, the lowest year-over-year since June 2021.
The occupancy rate also declined 0.2 percent year-over-year as of September. However, the index registered a 1.8 percent growth year-to-date as of the same month, the same report shows.
