Atlanta-based multi-family investor Cortland snatched just over $ 340 million from German Bank to help finance his massive $ 1.2 billion purchase Pure multi-family REIT, according to information published by Walker & Dunlop this morning.
This financing covered eight properties within the larger portfolio of 22 assets and 7,085 units that made up the $ 1.2 billion agreement, and it included “flexible call protection and extension options at variable rates. According to information published by Walker & Dunlop (W&D). Details of any additional funding could not be gleaned immediately.
The purchase was expected to be finalized in the fourth quarter of 2019, according to transaction information released by PURE last summer.
The W&D team that was responsible for researching and organizing this debt transaction was made up of Aaron Appel, Keith kurland and Jonathan and Adam schwartz, who are senior managing directors and co-responsible for the company’s New York-based debt and equity market advisory operations. They were joined by the director Michel Ianno in closing the deal.
Pure’s portfolio of 22 properties that Cortland will add to its current collection of 60,000 units includes multi-family assets located in major markets, primarily in the Sunbelt area, according to W&D. The set of properties covered by this financing from Deutsche Bank are located in cities such as Dallas, Houston and Phoenix.
With the acquisition, Cortland can now call itself the largest multi-family owner-operator in the Dallas-Fort Worth area, according to W&D. The company is planning a capital expenditure campaign for the portfolio to modernize the exteriors, interiors and equipment of the buildings as well as the landscaping.
“The acquisition of PURE Multi-Family REIT represents our confidence and belief in multi-family growth,” Cortland CIO Mike Altman said in prepared remarks. “By executing our financing on this acquisition, [W&D has] enabled us to continue our growth in these markets.
A representative for Deutsche Bank did not immediately respond to a request for comment.