Cortland Gets $340M Deutsche Bank Loan on $1.2B REIT Acquisition
Atlanta-based multifamily investor Cortland nabbed just over $340 million from Deutsche Bank (DB) to help fund its whopping $1.2 billion purchase of Pure Multi-Family REIT, according to information released by Walker & Dunlop this morning.
This financing covered eight properties within the broader portfolio of 22 assets and 7,085 units that comprised the $1.2 billion deal, and it included “flexible call protection and extension options at a floating rate,” according to information released by Walker & Dunlop (W&D). Details on any additional financing could not immediately be gleaned.
The purchase was slated to close in the fourth quarter of 2019, according to information about the transaction released by PURE last summer.
The W&D team that was responsible for sourcing and arranging this debt transaction was made up of Aaron Appel, Keith Kurland and Jonathan and Adam Schwartz, who are senior managing directors and co-heads of the firm’s New York-based debt and equity capital markets advisory operation. They were joined by director Michael Ianno in closing the deal.
The 22-property portfolio from Pure that Cortland will be adding to its current collection of 60,000 units includes multifamily assets located in major markets mainly throughout the Sunbelt region, according to W&D. The bundle of properties covered by this Deutsche Bank financing are located in cities like Dallas, Houston and Phoenix.
With this acquisition, Cortland can now call itself the largest multifamily owner-operator in the Dallas-Fort Worth area, according to W&D. The firm is planning a capital expenditure campaign for the portfolio to upgrade building exteriors, interiors and amenities as well as the landscaping.
“The acquisition of PURE Multi-Family REIT represents our confidence and conviction in multifamily growth,” Cortland CIO Mike Altman said in prepared remarks. “By executing our financing on this acquisition, [W&D has] allowed us to continue our growth in these markets.”
A representative for Deutsche Bank did not immediately respond to a request for comment.