US developer Continental Properties has secured an extensive refinancing package amounting to 480 million dollars. The transaction encompasses a portfolio of ten multi-family residential complexes comprising a total of more than 2,700 units, located across seven states in the American South and Midwest.
New York Life Investment Management (NYLIM) is acting as lender. The financing arrangement was arranged and structured on the brokerage side by Jim Cope of real estate services firm Walker & Dunlop.
Refinancing of existing construction loans
According to the company, the newly raised debt capital serves to take out previous construction financing for the completed residential schemes. Dan Sell, Vice President of Finance at Continental Properties, stated that this step delivers significant returns to the participating investors and sustainably strengthens the company's balance sheet structure.
Sell also emphasised that the debt package from NYLIM enables the company to maintain its focus squarely on its core business. He noted that the delivery and operation of high-quality, affordable housing in expanding target markets would continue as planned.
Geographic diversification and fund integration
The ten refinanced residential complexes are spread across several regions of the United States:
- —Florida and Georgia in the South East
- —Illinois, Indiana and Iowa in the Midwest
- —Michigan and Tennessee as further locations
Continental Properties has not yet disclosed specific asset names or addresses for the individual properties. All assets are being transferred into the Continental Properties Development Fund II investment vehicle.
The addition of these properties expands the development fund to a total of 23 residential communities. Consequently, the total volume of the portfolio will in future amount to more than 5,700 apartments across high-growth US submarkets.
