CBRE Investment Management Closes Mortgage Loan for 290-Unit Multifamily Community Outside Dallas
May 24, 2022
A fund sponsored by CBRE Investment Management closed on a mortgage loan to finance S2 Capital’s acquisition and renovation of the Preslee Apartments in the Dallas/Fort Worth metro area. The floating-rate loan has an initial term of three years, can extend up to two additional years, and features future funding to finance the sponsor’s business plan.
The Preslee Apartments is a garden-style, multifamily property located at 2504 Ivy Brook Court in Arlington, Texas, and includes 290 units that feature new hard-surface countertops, wood-like vinyl flooring, track lighting, walk-in closets and balconies/patios in select units. Residents also have access to community amenities that include a swimming pool, clubhouse, fitness center, business center, picnic areas and grills, covered parking and garages. The property is also well-located close to I-30 and Texas State Highway 360, providing excellent access to the business, retail, lifestyle and entertainment hubs of Dallas and Fort Worth.
“This transaction was an excellent opportunity to lend to an experienced sponsor who has a demonstrated capability of adding value to residential properties across the South and Southeast,” said Michelle Liu, Managing Director for CBRE Investment Management. “We believe that the new ownership’s plans for interior renovations will further increase the quality of the asset and ensure that it will remain an attractive housing option in a growing metro area with strong economic fundamentals.”
Lauren Bresky of Northmarq Capital arranged the loan on behalf of S2 Capital.
According to CBRE Investment Management’s research, the Dallas/Fort Worth area is outpacing all other major U.S. metro markets in employment growth. That growth, combined with the rising home prices and low residential vacancy rates in the area, will continue to drive strong rental demand, according to the research.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $146.8 billion in assets under management* as of March 31, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.