KeyBank, Newmark Lend $157M Toward Kentucky Multifamily Portfolio Buy
By Andrew Coen January 4, 2022 11:34 am
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Florida developer Stoneweg US has obtained $157 million of acquisition financing to purchase a 1,246-unit multifamily portfolio in the Louisville, Ky. area, Commercial Observer has learned.
Keybank (KEY) provided an $88.825 million loan for Stoneweg’s purchase of Middletown Landing in Louisville that comprises 33 three-story walkup buildings with a total of 646 units.
And Newmark (NMRK) supplied a $68.25 million loan for Stoneweg’s acquisition of Mallard Crossing at St. Matthews in Saint Matthews, Ky., a complex of 51 two-story walkup buildings with 600 units.
Representatives for Newmark and KeyBank did not immediately return requests for comment.
Stoneweg acquired the two properties from Columbus, Ohio-based Lifestyles Communities. Rosewood Realty arranged the transaction with a team that included Jonathan Brody, president of national sales, and Jay Weiner, a senior broker.
“We’re fortunate to acquire two high-quality assets that significantly bolster our overall unit count and allow us to extend our reach in a market that we’ve been so successful in,” Ryan Reyes, chief investment officer for St. Petersburg, Fla-based Stoneweg US, said in a statement. “[Acquiring] Middletown Landing and Mallard Crossing at St. Matthews represents a giant step forward in our growth strategy and this move is indicative of our capabilities to source and close quality deals on a large scale.”
The deal marked the largest ever acquisition for Stoneweg. The firm is aiming to grow its multifamily portfolio to nearly 15,000 units by the end of 2022.
The 2014-built Middletown Landing located at 700 Landis Ridge Drive is a 500,00-square-foot complex with amenities that include clubhouse, pool and fitness center.
Located at 400 Mallard Creek Road, the 1988-constructed Mallard Crossing at St. Matthews is a 744,752-square-foot development with pool, fitness center, tennis court and clubhouse.
Operations at Middletown Landing will be overseen by Greystar with The PMR Companies managing Mallard Crossing.
“St. Matthews, built in the late 1980s, had a clear value-add play giving the buyer, Stoneweg, the ability to not only increase rents, but enhance better living for the tenants,” Brody said in a statement. “Middletown, built in 2014, has strong cash flow and with little to no deferred maintenance giving Stoneweg a turn-key property.”
Andrew Coen can be reached at acoen@commercialobserver.com.
