UC Funds reaches 24th annual closing- A $14.3 million multifamily transaction
We’re feeling great about 2018 here at UC Funds. We’ve reached 24 closings for the year, with a $14.3 million first mortgage loan for the acquisition and renovation of Golden Gate Townhomes, a multifamily property located at 1 Chatfield Drive in Stone Mountain, Georgia. The asset consists of 37 two-story buildings totaling 316 units.
The Sponsor acquired the run-down property in 2012 and has incrementally renovated it to near Class A condition. While our $14.3 million loan was originally built as a $12.0 million loan at term sheet signature and deposit receipt, we recognized the property’s substantial underlying equity value and took the opportunity to exercise our entrepreneurial skills. Drawing upon experience, we grew the loan to refinance the previous lender and more significantly, to accommodate a larger return of equity to the Sponsor.
The loan’s new structure led to an ideal outcome for both sides. It allowed us to deploy more capital at a higher rate of return. It also enabled the Sponsor to complete the final phase of renovation, achieve full occupancy, and pursue additional transactions. Golden Gate Townhomes was built in 1967 on a 50.6-acre site. The property includes 13.1 acres of undeveloped land, currently zoned for the addition of 100 units.
The surrounding suburb of Stone Mountain, 12 miles Northeast of downtown Atlanta, is experiencing rapid multifamily growth. In fact, Stone Mountain currently outpaces the neighboring metro, with more renters opting for affordable housing and easy access to Atlanta’s major employers.
The asset’s location is also proximate to East Atlanta’s selection of universities and colleges, including Emory University, Georgia State University, Perimeter College, and Georgia Piedmont Technical College.
We’re thrilled to exceed $270 million with a profitable transaction that gave our team a chance to think bigger. We can’t wait to continue our Southern expansion in 2019.