Nova Capital, a Los Angeles-based real estate capital advisory firm, has secured a combined $55.85 million in financing on behalf of Darwin German Real Estate, a full service real estate investment firm that specializes in multifamily investments, for the acquisition of The Mark at Weatherford Apartments, a 355-unit Class A multifamily property in Weatherford, Texas.
The financing, arranged by Nova Capital Managing Director and Founder, Steven Yazdani, comprises a $37.85 million Fannie Mae senior loan from Walker & Dunlop and $18 million in preferred equity from Tryperion Holdings.
“Despite the headlines, appetite from capital providers for high-quality multifamily product remains strong, especially in high-growth markets such as Dallas-Fort Worth,” says Yazdani. ”The DFW metroplex is leading the nation in job growth with 650,000 new jobs added in 2023.
“Our team ran a rigorous competitive process and presented several robust financing options, even amidst challenging market conditions,” Yazdani continues. “In this case, Darwin German – a long-time Nova Capital client with whom we have a strong, trusted relationship – is an experienced owner who is nimble and responsive, with a clear business plan focused on value-add and yield-based investment opportunities. By identifying multiple sources of debt and equity, the Nova Capital team was able to create a capital stack that met the client’s needs for this acquisition. We ultimately selected Tryperion’s preferred equity execution, as their prior experience going behind agency senior loans ensured certainty of close in an accelerated time frame.”
Built in 2021, The Mark at Weatherford is 94% occupied and is situated on an 11.50-acre parcel adjacent to Weatherford College. Located at 172 College Park in Weatherford, TX, the apartment community offers a mix of one, two, and three bedroom floor plans with a host of modern amenities, including community BBQ/picnic areas, resort-style pool, business center, dog park, and fitness center.
“As specialists in the Dallas/Fort Worth Metroplex since 1991 and owners of more than 2,100 units in the region, our team immediately recognized the value in acquiring this well-located, stabilized asset on behalf of our investors and, given current market conditions, we were able to acquire this asset at well below replacement cost,” says Darwin German, President of Darwin German Real Estate.
German notes that “The Mark at Weatherford is well-positioned to benefit from rising renter demand as a result of this exponential growth.”
“Our firm approaches every investment with an ‘investor-first’ mindset,” says German. “We see this asset as an opportunity to harness the power of the massive migration the DFW metroplex has garnered over the past decade while also benefiting from long-term ownership of this stable, cash-flowing Class A asset. In keeping with this strategy, we are actively seeking additional acquisition opportunities in the Dallas multifamily market.”
“We are excited to partner with Darwin German Real Estate and Nova Capital on this acquisition,” says Jeffrey Karsh, managing partner and founder of Tryperion Holdings. “Our experience providing preferred equity behind both Fannie Mae and Freddie Mac agency senior financing allowed us to close this transaction quickly and seamlessly in a challenging market environment. Tryperion is continuing to actively deploy preferred equity, in addition to its senior financing and JV equity solutions.”
