Mesa West Lends $59M to Dinerstein Affiliate for Raleigh Acquisition

Financing will help the Houston-based developer buy the 298-unit multifamily property

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An affiliate of The Dinerstein Companies, a Houston-based developer of multifamily and student housing, has secured $59 million in financing to acquire Manor Six Forks, a 298-unit multifamily community in Raleigh, N.C. The affiliate was not named. 

Mesa West Capital provided the acquisition financing, a five-year, nonrecourse loan that was arranged by Matt Greer and Andrew Wilson out of Newmark (NMRK)’s Austin, Texas-based office. Mesa West’s origination team on the deal was led by Brian Hirsh in Chicago and Russell Frahm in New York. 

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The deal marks the arrival of The Dinerstein Companies and its affiliates into the Raleigh market, a metropolitan space known for its fast growth in recent years and an attractive cost of living for residents. 

We expect high-quality, well-located multifamily will continue to be in strong demand as Raleigh continues to grow,” said Hirsh in a statement. “Despite increases in Raleigh’s new multifamily supply, net absorption has been positive through the first half of the year.” 

Hirsh added that his lending team remains confident in Dinerstein’s ability to develop a lucrative business model in the face of significant market difficulties, notably a lack of liquidity, slower transaction volumes, trembling inflation and high interest rates. 

“While many U.S. markets are facing volatility and a variety of headwinds, experienced sponsorship is as important as ever, and we are confident in Dinerstein’s ability to execute on a value-add business plan,” said Hirsh. 

Located at 900 East Forks Road, Manor Six Forks will be rebranded as Infinity Six Forks under Dinerstein’s leadership. The property was 95 percent occupied upon closing and is located between the live-work-play neighborhood of North Hills and the more business-friendly center of Downtown Raleigh, which held a population of nearly 470,000, according to 2020 U.S. Census data. 

Manor Six Forks was built in 2010 and renovated in 2019 to feature one- to three-bedrooms units ranging between 800 square feet and nearly 1,400 square feet. 

Apartment community amenities include an on-site fitness center, a clubhouse, a pool, and a rooftop lounge area.    

The Dinerstein Companies is a family-owned firm founded in 1955. The firm has completed the acquisition or construction of more than 75,000 multifamily apartment units and 44,000 student housing units across 26 states, according to its website. Today the firm has just over $3 billion in apartment assets under management, including $1.3 billion in green LEED apartment properties.

The Dinerstein Companies didn’t return a request for comment.  

Brian Pascus can be reached at bpascus@commercialobserver.com