Greystone Lends $59M on Denver Resi Complex Acquisition
Besyata Investment Group nabbed a $59 million gap mortgage from Greystone to supplement its $65.5 million acquisition of One Dartmouth Place—a residential community in Denver, Colo.—according to an announcement Tuesday from Eastern Union Funding, which brokered the bridge loan.
The three-year, interest only bridge loan carries a rate of 5.5 percent—3.75 over LIBOR—and a 90 percent loan-to-value, which Eastern Union Funding managing director Jeffrey Seidenfeld, who arranged the financing for Besyata, told CO is “unheard of in this market environment.”
Besyata partnered with New York-based private equity firm The Scharf Group to acquire the property, and property manager and developer BH Management will handle the day-to-day management and leasing, according to a news release published Wednesday on BusinessWire. The property’s seller was not immediately clear as officials at both Besyata and Scharf could not immediately be reached.
“We started the financing process with Freddie Mac, but when an equity investor dropped out—as sometimes happens—there was a gap in the capital stack,” Greystone Managing Director Dan Sacks, who originated the transaction, told CO. “With our versatility as a private lender, with a growing portfolio lending platform, Greystone was able to provide a 90 percent bridge loan to fill that gap, so the acquisition could be completed. We’ll look to exit the short-term financing with an agency loan down the road.”
The property, located at 11100 East Dartmouth Avenue in Denver, is comprised of 418 units and is currently 96 percent occupied, according to information from Eastern Union.
The complex includes a playground, picnic areas with gas grills, a courtyard with a barbecue, a pet park, a 24-hour fitness center, indoor and outdoor basketball courts, facilities for racquetball, a business lounge and a TV lounge, a clubhouse, a game room, laundry facilities, a sauna and a swimming pool.
An official at Besyata could not immediately be reached.