US developer Continental Properties has completed a 480 million US dollar refinancing for a portfolio of ten multifamily residential complexes. Together, the properties comprise more than 2,700 residential units across seven states in the South and Midwest of the United States. The debt capital was provided by New York Life Investment Management (NYLIM), with Jim Cope from advisory firm Walker & Dunlop facilitating the transaction.
Replacement of construction loans strengthens balance sheet structure
The newly secured funds will primarily be used to pay off existing construction loans. Dan Sell, Vice President of Finance at Continental Properties, stated that the new financing structure would generate significant proceeds for participating investors. He added that the comprehensive capital package from NYLIM enables the company to sustainably strengthen its balance sheet while maintaining its focus on providing and operating high-quality, affordable housing across expanding target markets.
The ten refinanced multifamily developments are situated in the states of Florida, Georgia, Illinois, Indiana, Iowa, Michigan, and Tennessee. The company has not yet released specific property names or detailed addresses for the individual assets.
Integration into closed-end development fund
Following the closing of the transaction, the ten properties will be transferred into the Continental Properties Development Fund II. Following this integration, the closed-end fund will encompass a total of 23 residential developments with more than 5,700 units, representing a central pillar in the developer's growth strategy.
- —Financing volume: 480 million US dollars of debt capital from New York Life Investment Management
- —Scope: Ten multifamily residential complexes comprising more than 2,700 housing units in total
- —Target entity: Integration into the Continental Properties Development Fund II, which will hold over 5,700 apartments in future
- —Regional breakdown: Locations in Florida, Georgia, Illinois, Indiana, Iowa, Michigan, and Tennessee
By successfully converting short-term construction loans into long-term debt, Continental Properties obtains the planning certainty required to manage the portfolio. The transaction also highlights ongoing interest from institutional capital providers in large-scale residential portfolios within fast-growing regions of the United States.
