On Monday, online marketplace for real estate investing, RealtyMogul, announced a full capital stack transaction combining debt and equity with the successful purchase of a 112-unit apartment community, Bristol Park Apartments, in Fayetteville, NC.
Bristol Park Apartments, located six miles southwest of the US Army Base Fort Bragg, is 95 percent occupied, has new construction, with spacious floor plans that include 9-foot ceilings, large kitchens, walk-in closets, and fireplaces. Anchored by Fort Bragg, the largest US Army base by population, the soldiers receive a “basis allowance for housing,” which is greater than the in-place rents in the property. The transaction also includes a 7.6-acre lot at the rear, which was acquired alongside the apartment building in this transaction.
RealtyMogul funded $7.59 million in bridge financing and raised $1.5 million in joint venture equity for a total of 90 percent of the $10.12 million purchase price through both debt and equity. The Sponsors, Evolution Estate Partners and Triumph Management Group, plan to phase out the lease-up concessions and sell the property within five years.
“Our vision at RealtyMogul.com is to simplify real estate and be a one-stop shop for both equity capital and debt capital – this transaction highlights the power of our platform and provides a roadmap for us to be the leader in financing the full capital stack for commercial real estate. We’re excited to partner with Evolution Real Estate Partners and Triumph Management Group and excited about the plans for this 112-unit apartment complex.”
Chuck Taylor, Managing Director in the RealtyMogul’s Atlanta office, noted:
“This demonstrates quite clearly how we can do something extraordinary in the marketplace. Coordinating and executing both debt and equity while meeting an acquisition timeframe for our partner was not easy. Getting this first debt/equity transaction done on our platform is a huge win for us and our client. Looking forward, we believe this provides our investors and our partners with a competitive advantage.”
James Freeman, Sr. Managing Partner at Evolution Real Estate Partners, then added:
“We are pleased to have completed this joint venture with RealtyMogul.”
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