Värde Partners Provides $60M Refinance for Two-State Multifamily Portfolio

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RealSource Residential has scored a $60 million loan from Värde Partners to refinance three multifamily properties comprising 816 units in Greensboro, N.C. and Farfield, Ohio, Commercial Observer has learned.

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NKF Capital Markets Dustin Stolly, Jordan Roeschlaub, Nick Scribani and Josh Egert arranged the debt.

“RealSource has an impeccable track record in the value-add multifamily space,” Roeschlaub said in prepared remarks. “This financing allows them to lower their cost of capital substantially while they complete the remainder of the business plan. The loan also offers near-term flexibility that enables RealSource to convert to fixed-rate financing efficiently.”

The Salt Lake City, Utah-based company is led by Nate Hanks and Mike Anderson and focused on value-add acquisitions of multifamily properties, having acquired more than 50 properties since 2002. RealSource acquired the collateral assets between 2015 and 2016 and has since improved common areas and unit interiors across the portfolio. 

Sources familiar with the transaction told CO that Värde Partners liked the deal as it financed multifamily assets with good in-place income, good market supply/demand dynamics and a light value-add business plan.  “It stays with their thesis that well-located multifamily will continue to be in demand and occupied, especially Class-B product due to affordability issues with more urban Class-A properties,” one source said.

Officials at Värde Partners declined to comment. Officials at RealSource could not immediately be reached for comment.