Cerco Finances $40M Non-Performing Loan Purchase for Charlotte Apartments

Dornin Investment Group (DIG) has sealed the purchase of a roughly $40 million nonperforming senior loan backing a newly built multifamily property in Charlotte, N.C., Commercial Observer has learned. 

Cerco Funding provided note-on-note financing for DIG to acquire the loan in an off-market transaction, paving the way for DIG to assume ownership of the 222-unit The Oliver apartment complex, three miles from the University of North Carolina at Charlotte’s campus. 

“This acquisition reflects our continued focus on sourcing high-quality assets in growth markets where we can unlock value through strategic resolutions on performing loans,” Chris Dornin, the founder and CEO of DIG, said in a statement. “Charlotte’s fundamentals remain strong, and we believe this asset is well positioned for long-term performance.”

Ripco Real Estate negotiated the note-on-note financing with a capital advisory team led by Adam Hakim, James Murad and Michael Winter. Arden Gist of the Gist Group arranged the purchase.

Located at 3000 Gloryland Avenue, The Oliver consists of three four-story buildings and is 90 percent occupied, according to Ripco. Community amenities include a pool, fitness center, spin studio, firepits, outdoor grills, conference room, coffee bar, pet spa and clubhouse.

Winter, a managing director at Ripco, said in a statement that the financing “positions the asset for long-term value creation.”

Officials at Cerco, a New York City-based private equity firm, did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.