Lightstone Capital Refis Dallas Apartments With $29M Loan
By Andrew Coen December 19, 2022 12:02 pm
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Lightstone Capital has closed $28.5 million of senior bridge financing to refinance a Dallas multifamily asset, Commercial Observer has learned.
The real estate debt platform for Lightstone Group supplied the loan to Azul Multifamily DE’s 362-unit, garden-style apartment complex in northeast Dallas. In addition to refinancing the property, the loan will also fund repairs and renovations of the 92 percent occupied Azul Apartments property.
“The owners sought to move quickly to secure the refinancing, and Lightstone was able to step in and complete it with no delays,” Eugene Rozovsky, senior managing director of Lightstone Capital, said in a statement. “Our flexibility and timeliness with a first-time borrower will support the continued improvement of a well-positioned workforce housing asset in a growing market.”
Greystone’s Thomas Wayda arranged the transaction.
Located at 10928 Audelia Road 12 miles from Downtown Dallas, the 1983-built property sits on 9.28 acres, with 20 three-story apartment buildings and 470 parking spaces. Community amenities include three swimming pools, a barbeque area, a dog park, an outdoor fireplace, a business center and a resident clubhouse.
Jeff Amos, principal at Azul Multifamily DE, noted that it was in need of bridge financing to address challenges with the property in the midst of headwinds facing the commercial real estate debt markets.
“We had open insurance claims and operational issues that called for a deep dive by a lender that could understand the underlying situation,” Amos said in a statement.
Azul acquired the property in 2019 and has executed capital improvements for about a third of the apartments with plans to renovate an additional 30 units.
Monthly rents at Azul Apartments range from $924 for one-bedrooms to $1,557 for two-bedrooms, according to Apartments.com.
Wayda said the loan will enable Azul to “complete their business plan and stabilize the asset.”
Andrew Coen can be reached at acoen@commercialobserver.com.
