WEST PALM BEACH, FL - Electra Capital, a boutique lender specializing in capital solutions for the multifamily industry, announced today that it has originated a $43 million bridge loan for sponsor Three Pillars Capital Group’s acquisition of two apartment communities in Houston, Texas.
Gryphon Real Estate Capital Partners provided the senior mortgage of $35 million, while Electra Capital retained an $8 million mezzanine loan. This $43 million transaction marks the third loan that Gryphon and Electra have recently closed together.
CBRE Vice President Derek Fasulo of Houston arranged the financing. Gryphon Real Estate Capital Partners, LLC will be the asset manager for the senior loan portion of the bridge loan.
Three Pillars Capital Group acquired the 256-unit Westridge Gardens and 364-unit Mainridge, two late-1970s vintage properties located a half mile apart in the fast-growing Medical Center South submarket of Houston. The bridge loan from Electra will allow Three Pillars to significantly upgrade the exteriors and interiors of the properties, improve common areas and recast the properties through attentive management and a focus on providing value for tenants.
“Value-added multifamily properties in Sunbelt cities like Houston are continuing to benefit from an influx of residents from other high-cost-of-living states and densely populated cities,” Samuel J. Greenblatt, CEO of Electra Capital. “This loan gave Three Pillars the opportunity to build its portfolio with two ideally located value-add properties and the capital needed to execute on its renovation plan.”
“Gryphon is proud and excited to continue our burgeoning relationship with Electra,” Jim Hopkins, co-managing partner of Gryphon commented. “Our two firms have shown once again that we can quickly and seamlessly underwrite and close multifamily loans together.”
Josh Welch, Founder and Managing Principal of Three Pillars Capital Group, stated “TPCG is excited to expand our portfolio in the Houston area and we are very appreciative of the effort put in by the Gryphon and Electra teams in getting our loan closed. We expect this transaction to be the first of many together.”.
This is the second sizeable bridge loan Electra has provided in the past month. In October, Electra closed on a $94 million bridge loan for Four West Las Olas, Elevate Partners’ new luxury apartment tower in downtown Fort Lauderdale, Fla.
Located at 2501 Westridge Street, Westridge Gardens was built in 1979 and offers one- and two-bedroom units ranging from 670 square feet to 900 square feet. The gated, pet-friendly community offers a pool, laundry facilities, and a fitness center. Mainridge, also built in 1979, is located at 2600 Westridge Street and offers one- and two-bedroom units starting at 691 square feet up to 997 square feet, with similar amenities. Both apartment communities are ideally located with easy access to I-610/Alt-90/Hwy288 and lie in close proximity to NRG stadium and Texas Medical Center.
About Electra Capital: Electra Capital provides bridge loans, mezzanine loans and preferred equity ranging from $5 million to $150 million. The firm benefits from the combined experience of its executive leadership team, who have collectively closed hundreds of transactions representing over $10 billion over their careers. Electra Capital boasts a national network of experts in acquisitions, underwriting, structuring, closing, and management, enabling us to effectively meet our client’s needs.
About Gryphon Real Estate Capital Partners: Gryphon’s Transitional Multifamily Bridge Loan Program focuses on originating first mortgage loans for value-add and lease-up strategies on multifamily properties requiring repositioning, capital improvements and/or time to stabilize the rent roll, prior to securing long-term financing. Gryphon’s competitive advantage is its ability to lend on balance sheet combined with extensive real estate operating experience.