Six Peak Capital Secures $54M for 118-Unit Portfolio in LA

The real estate includes three conventional multifamily properties and three co-living properties

reprints


With multifamily investment soaring, developer Six Peak Capital has secured $53.7 million in non-recourse bridge financing for a six-property portfolio in Los Angeles.

The loan was provided by a real estate investment trust named MF1, which is a partnership between Berkshire Residential Investments and Limekiln Real Estate. The portfolio includes three conventional multifamily properties and three co-living properties for a total of 118 units located in the neighborhoods of Eagle Rock, North Hollywood, East Hollywood and Koreatown

SEE ALSO: Northwind Group Provides $62M Loan for Queens Condo Building

George Smith Partners announced the funding and represented the borrower.

Co-living has become a popular strategy amid the ongoing housing shortage and affordability crisis in major cities. Six Peak Capital found that throughout the pandemic, co-living remained resilient as tenants continued to lease co-living bedrooms despite an overall decline in occupancy rates across traditional multifamily properties.

“The financing represents another milestone for the co-living asset class,” Six Peak’s Chris Aiello said. “As Los Angeles continues to recover from the pandemic, it will become apparent that this product type serves a missing middle renter and the backbone of L.A.’s dynamic workforce. It will become clearer that investors in equity and debt need to add exposure to co-living as a subset of their multifamily investment portfolio, especially in the L.A. market.”

Six Peak Capital has a L.A.-based multifamily and co-living portfolio of more than 2,000 beds in more than 900 units, with over $400 million in total capitalization and $275 million assets under management.

The L.A.-based George Smith Partners team that represented the borrower included Malcolm Davies, Zack Streit, Drew Sandler, Alexander Rossinsky, Aiden Moran, Brandon Asherian and Ben Tracy

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.