New York, NY — Lument has announced the closing of a $21.9 million proprietary bridge loan to acquire and renovate Pinebrook Apartments, a 208-unit garden-style apartment community in Jacksonville, Florida. The deal was led by Owen Breheny, managing director at Lument.
The sponsor, Bella Property, LLC, is a repeat client of Lument. Bella Property will fully manage the community, adding the Jacksonville site to its portfolio of over 1,450 multifamily projects across California, New Mexico, Texas, North Carolina, and South Carolina.
“Jacksonville is a fast-growing and competitive market, and it was our pleasure to help our client purchase its first multifamily community there,” said Lument’s Breheny. “We were able to satisfy our client’s 1031 exchange with this acquisition and include 100% of the CapEx costs to fund improvements, adding to the quality of the property which already holds a 98% occupancy rate.”
The deal was brokered by Tim Stevens, principal at CREFCO, a repeat client of Lument.
“For the past several years it has been a privilege of CREFCO to work with the great people of Lument to close many transactions in the multifamily sector,” said Stevens. “This transaction in Jacksonville closed in less time than we needed and was one of the smoothest processes for any deal CREFCO has originated this year. We look forward to continuing our prosperous relationship with Lument.”
The loan features a three-year term and includes $1.7 million to pay for planned capital improvements at the property. Improvements include a premium update for 19 units, which will offer new kitchen cabinets, appliances, flooring, and lighting fixtures. Further upgrades include a remodeled clubhouse, renovated fitness center, new lighting packages, HVAC replacements, and security upgrades.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. Lument has approximately 600 employees in over 25 offices across the United States. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.