NewPoint Lends $35M on Texas Apartments Acquisition
River Rock Capital has sealed $35.3 million of bridge financing for the acquisition and lease-up of a newly built multifamily asset just outside Austin, Texas, Commercial Observer can first report.
NewPoint Real Estate Capital supplied the two-year, floating-rate loan with three one-year extension options for the private real estate investment firm’s Siena Round Rock property in Round Rock, Texas. River Rock acquired the 198-unit complex from RightQuest Residential for an undisclosed price this past summer.
Meridian Capital Group’s Judah Hammer and Daniel Neiss arranged the transaction.
“This was a true ‘time is of the essence’ closing – within 32 days from signed application,” Brian Skurnik, managing director of proprietary lending at NewPoint, said in a statement.
Siena Round Rock was more than 95 percent occupied as of August, seven months after the leasing process began in January. River Rock plans to pursue permanent agency or U.S. Department of Housing and Urban Development/Federal Housing Administration-backed financing once the property is stabilized, according to NewPoint officials.
“Swift leasing velocity – which topped 40 units per month in May and June – is demonstrative of the sheer demand for a rental property of this caliber and price point in the Austin [metropolitan statistical area],” Mitchell Hammer, managing principal at River Rock Capital, said in a statement. “NewPoint has paved a clear path to low-cost permanent debt.”
Located at 8100 County Road 110 roughly 27 miles northeast of downtown Austin, Siena Round Rock comprises studio, one- and two-bedroom units. Community amenities include a resort-style swimming pool with beach entry and cabanas, a dog park with wash station, a fitness center with yoga room, billiards, package lockers and outdoor grilling stations.
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