SIOUX FALLS, SD - Tzadik closed on a refinance of 2 portfolios in Sioux Falls, SD. The two portfolios combine for over 1100 units across 22 communities.
The first portfolio was acquired by Tzadik Management in October of 2018 with a bridge loan. Over $5M in capital improvements were conducted during that period and another $4M set to be completed in the next year. The second portfolio was acquired in March of 2019, the latest acquisition in Sioux Falls to date for the company. Both portfolios were successfully repositioned and Tzadik was able to obtain permanent financing with a creative capital stack, capitalizing on the low interest environment.
The timing of this refinance shows the strength of the two acquisitions, further justifying the companies highly publicized push to the Upper Midwest. “Diversifying away from primary markets and positioning our self in the Upper Midwest has paid dividends. We are pleased with the results so far and will continue to aggressively position ourselves throughout the Dakotas” said Chief Executive Officer, Adam Marcus Hendry.
The closing comes even in the midst of the COVID-19 Pandemic, where many companies have been dealing with substantial loss of revenue and significant drops in occupancy.
“As an essential business, we maintained 97% physical attendance across all offices, including corporate. This separated us from our competition and has helped raise our portfolio valuations” said Hendry. “Our commitment to our residents and our Core Values can’t be overstated”. Tzadik Management’s protocol surrounding the pandemic resulted in many communities outperforming their competition.
“In 2018 we created a recession playbook which involved markets which had previously not been affected by economic downturns. We are now seeing this thesis tested and it’s evident in our collections and in this latest refinance that the risk paid off in the Upper Midwest” Said Executive Vice President Michael Davalos.
Tzadik is a growing, innovative, and driven real estate and property management company based in Miami, Florida. Since its formation in 2007, Tzadik has managed over $1 billion in apartment complexes, over 19,000 units in over 20 states and over 15M sqft in commercial real estate. Through excellent management, a focus on company culture, tech driven style of operating and a commitment to maintaining strong physical attendance, Tzadik management has established a reputation for Building Lasting Relationships.