BRT Realty strikes 11th hour equity deal.
Eastern Consolidated's Capital Advisory Division sourced approximately $11 million in limited partner equity as part of the capitalization of the $39.1 million acquisition of Pointe at Lenox Park, a 271-unit multifamily property in the fashionable Buckhead district of Atlanta, GA.
Stuart Gross, Executive Managing Director and Principal of Eastern Consolidated, handled the transaction on behalf of the sponsor/seller, Prominent Realty Group of Georgia Inc., and procured the equity partner, BRT Realty Trust of Great Neck, NY.
The sale also included a separate $27.4 million mortgage loan, which has an annual interest rate of 3.97 percent, matures in September 2026, and is interest only until October 2019. "Through our network of contacts, we were able to deliver the capital at a critical juncture after the original equity source was unable to follow through," Gross said. "By raising capital at the 11th hour we enabled the sponsor to meet his contractual obligations, which were about to expire."
Gross noted that executives at BRT were already acquainted with the management team at Prominent Realty Group from an earlier introduction through Eastern Consolidated. "As a result, they were able to act more quickly than is usually required," Gross added.
"BRT is one of the premier firms in the New York metro area and understands and appreciates the economic benefits of the high growth markets found in the southeast."
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|Comment:||BRT Realty strikes 11th hour equity deal.(TRANSACTIONS)|
|Publication:||Real Estate Weekly|
|Date:||Oct 5, 2016|
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