ATLANTA, April 26, 2018 /PRNewswire/ -- Invesco Real Estate (Invesco), a global real estate investment manager, announces today that it has originated a $80m senior loan as part of its rapidly expanding commercial real estate lending platform.
The loan origination has been secured to finance the acquisition and full redevelopment of a 344-unit, mid-rise apartment project known as Bella Posta Apartments in the Mission Valley sub-market of San Diego, California.
The loan was secured by the Sares Regis Multifamily Value Add Fund II, L.P., as sponsor, which is an affiliate of Sares Regis Group, one of the leading multi-family owner/operator/developers in the Western United States, and which has deep experience renovating and re-envisioning multi-family communities in infill California neighborhoods. As part of the project, the fund plans a complete renovation and upgrade to the residence interiors including the full modernization and re-envisioning of exteriors, common areas and amenities.
Charlie Rose, Senior Director, Structured Investments, Invesco comments: "As we expand Invesco's footprint as a nimble, creative lender, we are delighted to once again be working with Sares-Regis who is a best in class owner, operator and developer of differentiated multifamily properties in the Western United States. This loan is representative of our relationship-oriented approach to lending, allowing us to structure unique financing solutions for borrowers seeking responsive and flexible debt capital."
"Invesco Real Estate has committed to further scaling its lending platform as a complement to the firm's existing national footprint and established infrastructure," says Bert Crouch, Managing Director, Structured Investments, Invesco. "This origination demonstrates our ability to source, structure and close senior loans within the multi-family space, on behalf of our debt platform, which is targeting attractive risk-adjusted returns, focused on income through US commercial real estate loan originations with strong credit profiles."
As a firm, Invesco Real Estate has over 30 years of experience in the commercial real estate sector and has executed on credit-related transactions totaling more than $4.2 billion* since the end of the Global Financial Crisis.
"We are thrilled to announce the acquisition of Bella Posta, and to be working with Invesco once again," says Ken Coatsworth, Chief Financial Officer of Sares Regis Group. "Invesco stepped up early on to provide us with the certainty of execution and flexibility necessary to execute on a fast-moving transaction with a complex value-add business plan."
Invesco Real Estate's commercial mortgage business is actively originating senior and subordinate loans in primary and select secondary markets throughout the United States. With a focus on institutional quality real estate and sponsors, Invesco typically targets senior loans in excess of $50 million (and up to $250 million) and mezzanine loans in excess of $20 million (and up to $150 million). All major property types are considered including office, multifamily, industrial, hospitality, and retail with selective consideration of specialty property types including student housing, senior housing and self storage. As a floating-rate, non-recourse lender, most loans are structured with three to five years of fully extended term and up to 75% advance rates secured by core-plus and value-added collateral profiles.
*All data is as of 12/31/2017 unless otherwise noted.