Tzadik Management has closed on an $80 million refinance of two apartment portfolios with a total of 1,110 units in Sioux Falls, S.D. The company acquired the portfolios, which span 22 communities, in 2018 and 2019, successfully repositioned them and was able to capitalize on the current low-interest rate environment by securing permanent financing.
Tzadik purchased the first portfolio in the state’s most populous city in October 2018 with a bridge loan and subsequently oversaw $5 million in capital improvements, with another $4 million planned to be completed in the next year. The firm picked up the second portfolio in March 2019.
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The Miami-based company, which has managed more than $1 billion in apartment communities and 19,000 units in more than 20 states since its inception, decided in 2018 to invest in markets that had not previously been affected by economic downturns. Tzadik noted in a statement that the company was able to maintain 97 percent physical attendance across all its offices, including corporate offices, as an essential business during the coronavirus pandemic.
The company rolled out a number of distancing and sanitation measures in order to remain open and keep its staff on-site, including offering virtual communication options, virtual movie nights and Facebook group chats for residents and providing all its office visitors with sanitizers and masks. In a statement earlier this month, Tzadik said that it offered physical property tours, but made sure to keep at least 6 feet of distance between every person.
The company also provided a small internal pay stimulus to its employees to help them through financial difficulties caused by the pandemic and its associated economic shocks.