Six Peak Capital Secures $54M for 118-Unit Portfolio in LA
The real estate includes three conventional multifamily properties and three co-living properties
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
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.
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