Strategic Properties of North America has bagged $29 million in bridge financing for the acquisition of Vanguard Heights multifamily property in Creve Coeur, Missouri, Commercial Observer Finance can first report.
CIBC provided the debt, which features a floating rate of 2.5 percent over the 30-day LIBOR rate and full-term, interest-only payments, according to a source familiar with the transaction.
Vanguard Heights is a 174-unit luxury multifamily property located at 10362 Old Olive Street in Creve Coeur. The newly constructed property includes high-end amenities both in-unit and onsite, including a fitness training studio, a valet dry cleaning service and a car charging station.
The transaction marks Strategic Properties’ third property acquisition in the St. Louis area this year.
“We like the stability and the growth in St. Louis—it’s a great market. And with this property specifically we liked the location in Creve Coeur, the classic construction and the great amenities,” said Yitzy Klor, the chief operating officer at Strategic Properties, adding that the firm is in heavy growth mode and plans to acquire $500 million in properties in 2017 (compared with $300 million last year).
Meridian Capital Group’s Shaya Ackerman and Shaya Sonnenschein secured the debt. “The client recognized the unique opportunity to acquire one of the newest and up-and-coming residential buildings in a premier location of suburban St. Louis and needed a creative and expeditious financing solution,” Ackerman said in prepared remarks. “Our lender immediately saw the property’s intrinsic value and borrower’s success rate with this product type.” Meridian structured and closed the loan within 30 days, Ackerman added.
Representatives for CIBC declined to comment.