Western Wealth Capital (“WWC”), a real estate investment company, announced a new partnership with StepStone Group Real Estate LP (“SRE”), a subsidiary of StepStone Group Inc., a global private markets investment firm, initiated by the recapitalization of WWC’s apartment portfolio.
The recapitalization and strategic partnership have resulted in the refinancing of a large, geographically-diverse portfolio with 10 assets (and one additional pending), consolidating lenders, and placing moderately leveraged debt sized for the current market cycle. It will also ensure each asset has appropriate levels of working capital and growth funding to implement value-add programs.
“We are grateful for StepStone and their shared vision of our real estate investment strategies and their recognition of our operational strengths, long-standing history, and success,” said Janet LePage, Co-Founder and CEO, Western Wealth Capital. “This is an extraordinary opportunity not only for us to invest alongside a firm with significant experience sponsoring recapitalization investments in private real estate, but for our investment partners to participate and capitalize on future returns if they choose to do so with a firm of this scale and caliber.”
This transaction will facilitate the refinancing of a portfolio of 11 assets consisting of 2,750 units operated by Western Wealth Capital including nine of which consisted of a five-year, fixed rate financing with Freddie Mac. A portion of StepStone’s $200 million commitment will be applied to making near term and future equity investments, allowing WWC to take advantage of opportunities specific to each community as well as the changing market.
“Our long history with Freddie Mac, track record, portfolio size, and credit rating all contributed to securing the business agreement,” LePage explained.
John Waters, Partner and Head of Investments at SRE added, “this partnership allows us to increase our exposure to the multifamily sector alongside a strong manager that is well-equipped to continue to add value to the portfolio.”
Additionally, WWC can now move forward with pursuing prospective real estate opportunities in top growth markets such as Phoenix, Las Vegas, Atlanta, and Dallas.
“For business-friendly locations with employment and population growth, there is a clear and increased demand for housing,” LePage said. “These are key markets where fundamentals drive rental demand and support sustained investment opportunity.”
Jones Lang LaSalle Securities, LLC, an affiliate of Jones Lang LaSalle Americas, Inc. (“JLL”), served as exclusive financial advisor to WWC. Latham & Watkins LLP served as counsel to StepStone and Goodwin Procter LLP served as counsel to WWC. JLL also worked on behalf of the WWC team to secure the five-year, fixed-rate loan through Freddie Mac. The loans will be serviced by JLL Real Estate Capital, LLC, a Freddie Mac Optigo Lender.
