Marks continuation of company’s debt program shift to multifamily construction
Broadshore Capital Partners (Broadshore) announced today that it has closed a $31.2 million senior construction loan to Sovereign Properties for the construction of the Sovereign at Burleson, a 217-unit, garden style apartment community in Burleson, Texas. Sovereign at Burleson, which is located at 285 SE John Jones Drive, capitalizes on the high growth in this suburban Dallas/Fort Worth area along IH-35 West, one of the region’s major transportation corridors.
"Broadshore’s debt program seeks to make stretch senior construction loans on up to 80% of loan-to-cost on multifamily projects in communities with multiple economic drivers that are being undertaken by experienced developers such as Sovereign Properties," said Bleecker Seaman, co-CEO, Broadshore. "This loan further expands our multifamily construction lending program alongside our other high-yield debt activities. Changing market conditions coupled with our company’s expertise in multifamily investing allows us to seamlessly adapt our debt program to multifamily lending to provide capital where other lenders have pulled back."
Sovereign at Burleson benefits from its proximity to the premier commercial and industrial businesses located at the HighPoint Business Park and walking distance to numerous shopping and dining destinations. The community’s 217 contemporary apartment residences, configured as one-, two- and three-bedroom floorplans, will be developed in five, three-story buildings spread across the approximately 13-acre site. The interiors of the units utilize high-quality finishes and feature thoughtful color schemes, vinyl wood flooring, quartz and granite countertops, painted hardwood cabinetry, undercabinet and LED mood lighting, top of the line plumbing fixtures in the kitchen and master baths, and Nest thermostats.
Sovereign at Burleson will offer the most-sought-after resident amenities including a well-furnished clubroom, a resort-style swimming pool with aqua lounge, poolside grilling and recreation areas, a spacious gaming lawn and a fully functional bike shop.
Broadshore has extensive experience in multifamily investment and management built over more than 30 years of investing in markets across the United States. Broadshore’s team draws on this expertise for its debt program which allows the company to quickly evaluate market fundamentals and make loan determinations. Broadshore’s niche as a non-recourse lender for construction and transitional assets provides stretch senior and mezzanine financing, targeting loans sized in the $10-75 million range for projects throughout the U.S.
"We believe one of the strengths of Broadshore’s lending program is our ability to tailor each deal to the specific needs of the project and borrower," added Senior Vice President, Chris Miller who led the loan origination.
Sovereign Properties has been engaged in the concept, development, construction and project management of income generating real estate in the strongest job-growth markets across the United States for nearly 15 years. Along with its predecessor companies its multi-family experience exceeds 4,000 completed and leased apartments. The firm’s ten projects in Texas reflect the fact that Sovereign is an experienced developer aiming to create high-quality and differentiated communities in fast-growing Texas markets.
Broadshore’s loan origination was led by Senior Vice President Chris Miller. Greg Nalbandian, Senior Managing Director, Capital Markets at JLL sourced the construction financing on behalf of the sponsor. Seyfarth Shaw served as Lender’s counsel.
About Broadshore Capital Partners
Broadshore Capital Partners, LLC ("Broadshore") was founded in 1989 (under a predecessor name) and became an SEC registered investment adviser in 1991. In 2019 the company rebranded following a buyout led by its long-time partner, The Guardian Life Insurance Company of America. Broadshore is a leading national real estate investment management and advisory services company with approximately $1.5 billion in assets under management as of June 30, 2020. The firm provides real estate advisory services to a select list of international institutions, public pension funds, insurance companies and high net worth individuals. Broadshore is based in Los Angeles and retains regional offices in New York, Denver, Seattle and Phoenix.
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