Caldera Serves as Advisor on Recapitalization

Caldera Serves as Advisor on Recapitalization
DENVER, CO - Caldera Asset Management, a firm specializing in consulting and advisory services for the multifamily housing industry, today announced that it acted as the equity and debt advisor for ROSS Development & Investment (RDI), an affiliate of the Ross Companies, in the successful recapitalization of Seven Springs Village Apartments located in College Park, Maryland.

As part of its role in the recapitalization process, Caldera helped RDI negotiate a modification and extension to the property's existing, fully-performing securitized mortgage debt that was set to mature on September 1, 2010. In addition to securing the loan extension, Caldera helped RDI's management team identify AREA Property Partners, a New York-based investment firm, as a partner willing to inject new equity into the asset. Both developments were critical to ensuring the success of the recapitalization. The Ross organization will use its expertise in property renovation & management to enhance the overall performance of the asset.

"This was a large and complex deal, with many moving parts and required constant collaboration between all parties including Freddie Mac," said Mike Kelly, president of Caldera Asset Management. "The high-quality professionals at RDI and AREA Property Partners, who had a positive long-term vision for this well located asset, worked through many issues to bring this deal to fruition. Freddie Mac in conjunction with Primary Capital did an excellent job in keeping the debt achievable during the choppy interest rate environment. In terms of the scope of the accomplishment, Seven Springs was one of the largest successful full-cycle property recapitalizations completed 2010," said Kelly.

Located inside the Beltway in College Park, Maryland, Seven Springs Village is a 982-unit apartment community comprised of both mid-rise and garden style buildings. Metro bus and the University of Maryland shuttle busses have stops within the community that provide access to two Metrorail stations and the University of Maryland, making it a sought after place to live.

Caldera Asset Management is a multifamily consulting and advisory firm that offers sponsors, lenders, and equity investors the convenience and efficiency of one-stop shopping. The company offers solutions that fit its clients' needs including operational optimization, loan renegotiations, recapitalization and/or restructuring. Caldera was formed in 2008 by a team of multifamily experts with extensive experience in virtually every major market across the U.S.

ROSS Companies, founded in 1983 in Bethesda, MD is a recognized leader in apartment acquisitions and investment, development, property management and renovation in the Washington, DC metro area. With more than 11,000 apartment homes in its portfolio, the company is one of the most active multifamily real estate firms in the Mid-Atlantic region. ROSS Companies is comprised of three affiliates – ROSS Development & Investment, Realty Management Services, Inc. and RR Renovation & Construction, LLC. Portfolio growth is achieved through the selective acquisition of communities and extensive due diligence to identify value creation opportunities. ROSS Companies is committed to providing quality living and exceptional service to its residents. As of January 1, 2011, the ROSS Companies' manages 33 communities in and around the Washington, DC metro area.

AREA Property Partners, formerly known as Apollo Real Estate Advisors, is a leading international real estate investor and fund manager on behalf of prominent government and corporate pension funds, sovereign wealth funds, insurance companies, foundations, endowments, and high net worth individuals. Since the firm's founding in 1993, AREA Property Partners has overseen the establishment of multiple real estate funds and joint ventures totaling $13 billion in equity commitments for investments in the United States and globally. Its funds have collectively invested in over 500 transactions with an aggregated value in excess of $60 billion. The firm has offices in New York, Atlanta, Los Angeles, San Francisco, London, Paris,Luxembourg and Mumbai.
Source: Caldera Asset Management

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