3650 REIT, a national commercial real estate lender, this week originated a $31 million preferred equity investment on behalf of RREAF Holdings for the acquisition of a pair of build-to-rent apartment properties in Corpus Christi, Texas.
The investment is backed by Windy Shores in Aransas Pass, a 155-unit build-to-rent community, and Pearl Point, a 216-unit garden-style multifamily property in Rockport, a suburb of Corpus Christi. RREAF, which made the acquisition with Allentown-based manager DLP Capital, is planning renovations on both assets. The deal is RREAF’s second portfolio acquisition in less than a year.
Kip Sowden, CEO of RREAF Holdings, said the properties represent best-in-class assets in a fast-growing market and fit within the firm’s value-added strategy for working families.
The financing was arranged by Nathan Stone and Guy Griffith at Berkadia.
“The build-to-rent sector in particular has exhibited continued rent growth, while the fundamentals of the multifamily sector remain strong, even in today’s challenging and uncertain market environment,” said Jonathan Roth, co-founder and managing partner at 3650 REIT.
Roth, noting RREAF is a repeat borrower with 3650 REIT, added that the latest financing is part of its focus on relationships. “We look forward to maintaining our momentum and closing additional transactions in the coming months that align with our strategy of investing in change winners across asset classes as the nation continues to recover from the pandemic,” he added.
RREAF’s in-house property management company, RREAF Residential, will be taking over property management on both assets. The firm acquired the property from two different sellers as part of a larger push that led to the acquisition of more than 8,350 units over the past five years.