Mesa West Capital has provided a joint venture between The Preiss Company (TPCO) and an institutional equity partner with $97.7 million in first mortgage debt to finance two separate multifamily acquisitions in Raleigh, NC. The origination team was led by Mesa West Capital’s Brian Hirsh in the firm’s Chicago office, and Russell Frahm and Pamir Niaz in the firm’s New York office.
The two individual non-crossed, five-year, floating-rate loans are secured by The Edition on Oberlin (formerly known as Trilogy Cameron Village) and Greens at Tryon, two 200+ unit apartment communities located approximately five miles from each other near downtown Raleigh.
“The partnership here benefits from the synergies created when you combine experienced, long-standing local sponsorship with a strong institutional capital partner,” said Hirsh. “The Edition at Oberlin presented the opportunity to lend on a brand new, high-quality asset located at a truly main-and-main location within Raleigh.”
The Edition at Oberlin is a recently completed, 203-unit urban-style apartment complex at 305 Oberlin Road. The three-story property, offering studio, one-, two- and three-bedroom floorplans, has seen significant leasing velocity—averaging 15 new leases per month—since being delivered to market in September 2020. It was 88.7 percent leased at closing.
Greens at Tryon is a garden-style community featuring 265 apartment homes housed in 13 three-story residential buildings on a 28-acre site at 2805 Par Drive. The TPCO-led joint venture will invest significant capital to upgrade unit interiors, exterior and common area amenities at the property which has received minimal capital improvements since being delivered to market in 2001. When completed, the property will be more competitive with newer product in the surrounding area and in better position to draft off the momentum of the Raleigh market, according to Frahm, who along with Niaz originated the $48 million loan out of the firm’s New York office.
“Raleigh’s multifamily market benefits from strong job and population growth as well as its large pool of college-educated talent,” said Frahm. “While heightened construction activity resulted in more than 5,000 units delivered last year—the largest expansion since 2013—the vacancy rate remains extremely low as supply still struggles to keep up with demand.”
Josh Davis and Chris Caison, Managing Directors in the Charlotte office of Newmark’s Multifamily Capital Markets Debt & Structured Finance group arranged the financing on Greens at Tryon. Paul House, Managing Director, Capital Markets in the Houston office of Walker & Dunlop arranged the financing for The Edition at Oberlin.
