Transactions

ACQUISITION and RENOVATION

$8,000,000 JV Equity

Sapphire Capital Group recently provided capital advisory services to regional owner/operator of multifamily properties, resulting in the successful off-market acquisition of a 204-unit student housing property.

SCG introduced our client to one of our long-standing JV equity relationships that provided $8.0 million of equity and internal debt capital required to close resulting in an all-cash closing of this acquisition.

The capital budget included funds for amenity upgrades to the property, as well as unit upgrades to address existing market demand in an affluent middle-market suburb in the Mid-West.

RECAPITALIZATION and IMPROVEMENTS

$32,550,000 C-PACE FINANCING

Sapphire worked with a national provider of C-PACE capital to identify significant qualifying improvements and equipment allowing for an overall lower weighted average cost of capital for our client.

C-PACE is a public-private partnership agreement between private capital and government/state agencies to promote commercial property energy efficiency, structured through use of incremental tax levies that mirror traditional mortgage interest and amortization schedules. Standard terms include self-amortizing at a fixed rate (typically lower than bank balance sheet lending rates) for up to 35 years. Non-recourse; no financial covenants, intercreditor agreements, or repayment guarantees. C-PACE is not due-on-sale but can be prepaid early if needed.

ACQUISITION and REPOSITION

Sapphire Capital Group recently provided debt and equity capital advisory services to a regional owner/operator of multifamily properties, resulting in the successful off-market acquisition of a 192-unit student housing property in the Western US. The capital budget included funds for amenity upgrades to the 2007-vintage property, as well as for unit conversions to address existing market demand in a working-class community in the greater Denver region.

ACQUISITION and REPOSITION

Sapphire Capital Group recently provided capital advisory services to a regional owner/operator of multifamily properties, resulting in the successful off-market acquisition of a 216-unit student housing property in the Southeast region. The capital budget included funds for amenity upgrades to the 2011-vintage property, as well as for unit upgrades to address existing market demand in an affluent Georgia college community.

SCG understands the challenges of financing acquisitions with business plans that include value-add and repositioning strategies.

LEASEHOLD ACQUISITION

Sapphire Capital Group recently arranged $3.125 M of Preferred Equity for the acquisition and repositioning of a well-located 145-bed student housing property in the Pacific Northwest. The remaining capitalization of the leasehold acquisition was provided by an agency loan and Sponsor’s common equity.

As with most transactions in this current economic environment of higher short rates and widening cap rates, SCG was presented with the challenge of “topping off the equity stack.” Most traditional LP investors have backed away from all but center-of-the-fairway opportunities: this particular assignment combined elements of leasehold position, property stabilization and a secondary market location.

SCG was successful in achieving the capital raise goals of the Sponsor as a direct result of our long-standing relationships with both preferred equity and family office investors who are not afraid to understand current value available in both acquisitions and cash-in-refinances of experienced sponsors with solid business plans. Simply put, SCG has a JV investor base that fully appreciates and executes on well-underwritten projects with strong risk-adjusted return profiles.

PERM LOAN REFINANCE

Sapphire Capital Group recently arranged a non-recourse perm loan to refinance a stabilized retail center, fund all required reserves and provide capital for near-term capital improvements. The 7% fixed-rate loan is full-term interest-only, and was closed in a very short period of time, ahead of a fast-approaching CMBS maturity date. 

ACQUISITION and REPOSITION

Sapphire Capital Group recently provided capital advisory services ($23,250,000 of both Debt and Equity) to a regional owner/operator of multifamily properties, resulting in the successful off-market acquisition of a student housing property in the Southeast. The capital budget included funds for amenity upgrades as well as unit conversions to address existing market demand for conventional multifamily units in a vibrant university community in Georgia.

ACQUISITION and REPOSITION

Sapphire Capital Group recently provided capital advisory services to a regional owner/operator of multifamily properties, resulting in the successful off-market acquisition of a student housing property in the Mid-Atlantic region. Sponsor’s business plan is to reposition the well-located residential property to take advantage of supply constraints in a desirable high-end residential coastal community in South Carolina. The capital budget includes funds for amenity upgrades as well as unit conversions to conventional multifamily operations.

Acquisition

Sapphire Capital Group recently provided capital advisory services to a regional owner/operator of commercial real estate properties, resulting in the successful acquisition of a portfolio of stabilizing grocery-anchored centers in the metro-Washington, DC area by one of our long-standing JV equity relationships.

SCG initially introduced several potential equity partners, including the group that ultimately closed on the acquisition. SCG was able to reposition our JV equity partner into a more efficient direct ownership position. Because SCG understands equity and works tirelessly for the success of our clients, an overall more efficient transaction was structured, benefitting all parties involved in the process.

REFINANCE

Sapphire Capital Group recently provided debt advisory services to a regional owner/operator of strip retail properties, resulting in the successful refinance of a stabilizing grocery-anchored center in the metro-Washington, DC area. SCG sourced higher-leverage LifeCo debt to refinance floating-rate acquisition debt that had begun to sharply adjust upwards, allowing our sponsor to lock in a fixed rate at the time of loan application in March, protecting from the further increases in interest rates that ultimately materialized over this past Summer.

ACQUISITION AND REPOSITIONING

Sapphire Capital Group recently provided capital advisory services to a regional owner/operator of multifamily properties, resulting in the successful acquisition of a poorly performing student housing property in the Mid-Atlantic region. The balance sheet loan included $3,000,000 for property improvements and a light renovation program of all units, allowing for the repositioning of the property to conventional multifamily, offering a lower-cost housing option in an affluent coastal Carolina beach community. SCG arranged the $7,000,000 of outside equity from one of our middle-market real estate investment relationships.

NEW CONSTRUCTION

Sapphire Capital Group recently provided capital advisory services to a long-time client/developer of mixed-use properties, resulting in the successful capitalization of the first phase of a new transit-oriented-development in the Washington, DC metro area. The advisory assignment ranged from raising initial co-GP equity to completing the equity capitalization with an institutional grade investment partner. Additionally SCG provided back-stop underwriting and review of a new ground lease created for the benefit of this development.

ACQUISITION AND REPOSITION

Sapphire Capital Group recently provided capital advisory services to a northeastern owner/operator/developer of multifamily projects, resulting in the successful acquisition of 264 units in Murfreesboro, Tennessee. Capital consisted of approximately $13,000,000 of joint venture equity and $36,000,000 of non-recourse senior bridge debt, allowing time for Sponsor to implement a large-scale renovation and reposition program, and to unlock value by converting the well-located property to conventional multifamily. Efficient coordination between sponsor, joint venture equity partner, and senior bridge lender was critical in meeting the time frame required under the sales contract.

REFINANCE

Sapphire Capital Group recently provided capital advisory services to a regional commercial property owner/operator, resulting in the successful cash-out refinance of a 21,000 SF shadow-anchored shopping center in Augusta, Georgia. The $6,290,000 senior 4.50% fixed rate loan was provided by a regional credit union, who honored all terms negotiated prior to the recent run-up in interest rates, with only minimal adjustments to rate and proceeds. Sapphire’s experience in CMBS defeasance and our depth of lender relationships insured success and has led to subsequent opportunities with this quality sponsor.

HORIZONTAL LAND DEVELOPMENT

Sapphire Capital Group recently provided capital advisory services to a regional residential land developer, resulting in the successful refinance of Phase 2 of a project that will ultimately yield 174 market rate multifamily and townhome units in Ashburn, Virginia. The senior floating rate loan was provided by a local bank, who honored all terms negotiated prior to the recent run-up in interest rates.

CONSTRUCTION AND TERM LOAN

Sapphire Capital Group recently sourced a fixed-rate construction loan, convertible to permanent financing upon stabilization. The sub-4% debt provides the necessary capital for a privately owned regional real estate development and operating company to commence construction of a 13,582 SF strip retail center in Fairfax County, Virginia. The $6,500,000 senior fixed rate loan was provided by a local community bank and represents a new banking relationship for the sponsor.

ACQUISITION

Sapphire Capital Group recently provided capital advisory services to a northeastern owner/operator/developer of multifamily projects, resulting in the successful acquisition of approximately 500 multifamily units in the Southeast. Capital consisted of approximately $20,000,000 of JV Equity and $60,000,000 of non-recourse senior bridge finance.

REFINANCE

Sapphire Capital Group recently provided capital advisory services to a national privately owned real estate development and operating company, resulting in the successful refinance of 34,547 SF of unanchored retail in suburban Houston, Texas. The $13,750,000 senior fixed rate term loan was provided by a privately held specialty finance company.

REFINANCE

SCG arranged a $26,800,000 permanent loan to recapitalize an existing bridge loan for a newly renovated and repositioned big box retail center in Fairfax County, VA.

RECAPITALIZATION

SCG arranged $36,000,000 of bank financing for its client to recapitalize a recently developed Class-A multifamily project located in the Lopatcong, NJ. 

ACQUISITION

Advised family office on acquisition of 250+ developable acres in Austin, TX.

ACQUISITION

SCG arranged $14,000,000 of JV financing for its institutional client to acquire an existing Class-A multifamily project located in the southeast.

RECAPITALIZATION

Sapphire Capital Group (“SCG”) arranged $93,000,000 in permanent financing to recapitalize the construction loan for the newly delivered LIZ.

ACQUISITION

Arranged $90,000,000 in ground lease capital through a private investment group in the form of a 99-year ground lease for the acquisition of a 525-unit multi-family property in Chevy Chase, Maryland. Additionally, the ground lease was structured to assure that 100% of Agency lender requirements were satisfied.

ACQUISITION

Arranged $18,000,000 of senior leasehold mortgage debt for the acquisition of 1823 L Street. Sapphire further advised on the restructuring of the existing ground lease as well as on the extended-stay corporate tenant, who will operate the property as a boutique hotel.

ACQUISITION

Arranged $21,000,000 of ground lease capital in connection with the acquisition of Grand Reserve Apartments, a newly completed 290-unit garden apartment community located in Nashville, TN that achieved stabilization in June 2019.

DEVELOPMENT

Arranged $24,800,000 of opportunity zone capital in connection with the ground-up development of San Marco Crossing, a to-be-built 486-unit market rate rental apartment community located in Jacksonville, FL’s San Marco neighborhood.

ACQUISITION

Arranged $54,000,000 of ground lease capital and senior secured leasehold financing in connection with the acquisition of Millenium Apartments, a newly completed 298-unit market rate rental apartment community located in Fort Myers, FL.

REFINANCE

Arranged $49,000,000 of ground lease capital and senior secured leasehold financing in connection with the recapitalization of Rosemont Commons. A 500,000 sqft. super-regional shopping center located in Fairlawn, OH.

REFINANCE

Arranged $24,000,000 of bridge financing for the Phase I redevelopment of Annandale Plaza, a 116,000 sf. neighborhood center to be repositioned as a specialty retail and entertainment destination located in Annandale, VA.

DEVELOPMENT

Arranged $30,000,000 of ground lease capital financing for the development of Kiley Apartments, a to-be-built 315-unit luxury rental apartment building located in Washington, D.C.’s Southwest Waterfront.

ACQUISITION

Sapphire Capital Group arranged $69,997,000 JV, GP Co-investment and senior debt financing for The Crown Multifamily Portfolio, three contiguous value-add multifamily apartment communities consisting of 984-units and 126 two-story buildings located in Charlotte, NC.

DEVELOPMENT

Arranged JV land acquisition and GP Co-Investment financing for Phase I of San Marco Promenade, a multi-phase, mixed-use development project consisting of 250 luxury rental apartments and an aggregate of up to 520 market-rate rental apartments, ground floor retail, and surface parking located in Jacksonville, FL.

DEVELOPMENT

SCG has arranged $20,800,000 of construction financing in connection with the development of Cambria Resort & Conference Center a to-be-built 133-key hotel & conference center located in Ocean City, MD

DEVELOPMENT

SCG has arranged acquisition, development, and permanent financing in connection with the development of Children’s National Pediatric Specialty Care Center a state-of-the-art 60,000 sf. comprehensive pediatric outpatient facility located in Lanham, MD

ACQUISITION

SCG has arranged $57,800,000 of JV and ground lease capital in connection with the acquisition of Onyx on First a 266-unit high-rise apartment building located in Washington, D.C.’s Capital Riverfront

REFINANCE

Arranged $20,000,000 of CMBS financing in connection with the refinance of Andrews Manor, a 290,000 sf. community retail center located in Camp Springs, MD.

DEVELOPMENT

Arranged $16,000,000 of construction financing for a to-be-built 268-bed student housing project locating in Troy, NY.

ACQUISITION

Arranged $5,100,000 of JV financing in connection with the acquisition of The Quad, a 384-bed student housing property located in Orlando, FL.

REFINANCE

Arranged $16,500,000 of life insurance company debt in connection with the refinance of Shoppes of Olney, a 162,000 sqft. Retail community shopping center located in Olney, MD.

REFINANCE

Arranged $9,000,000 of life insurance debt financing in connection with the refinancing of Adelphi Manor, a 44,000 square foot grocery anchored community shopping center located in Hyattsville, MD.