PHILLIPS REALTY CAPITAL ARRANGES $19.175 MILLION BRIDGE LOAN FOR BG CAPITAL MANAGEMENT ACQUISITION OF GARDEN APARTMENTS IN MELBOURNE, FL
Bethesda, MD, November 6, 2017 – Phillips Realty Capital announced that a $19,175,000 transaction on behalf of BG Capital Management has closed and funded. Ares Management provided a bridge loan for BG Capital Management’s acquisition and renovation of Landmark at Waverly Place, a 208-unit garden style apartment project located in Melbourne, Florida. The acquisition financing was structured by Adam Bieber, Managing Director at Phillips Realty Capital.
Positioned in the heart of Central Florida’s booming high-tech corridor, Landmark at Waverly Place is a desirable low-density garden apartment community with strong value-add potential. Major employers nearby include Harris Corp, Lockheed Martin, Embraer, Blue Origin, Space X and Northrop Grumman. The property is located minutes from the Melbourne International Airport and just an hour from Orlando.
Community amenities include a resort-style lakeside pool, clubhouse, detached fitness center, playroom, poolside kitchens, business center, dog park and scenic lake views. The development was built in 1987 and consists of 208 garden-style units with one, two and three bedroom floor plans. BG Capital Management will execute an upgrade of 88 rental units over the next 2 years. The other 120 units are already upgraded with black appliances, (27 with faux wood floors), generating rent premiums.
“This property has great potential, and we look forward investing in upgrades that align with the expectations of tenants in this market,” said Richard Koch, Managing Member at BG Capital Management. “Phillips helped potential lenders understand the value of the asset as well as the added value of our investment strategy and management style.”
“We were thrilled at the opportunity to collaborate with BG Capital Management and ARES on this project,” Bieber said. “Both parties have platforms that perfectly align, and we look forward to watching the transformation of this property.”
About Phillips Realty Capital
Phillips Realty Capital is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.2 billion in debt and equity transactions a year and servicing a $2.4 billion loan portfolio on behalf of 25 institutional investors. Established in 1933, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond and Charlottesville, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to engineer the proper mix of capital to meet each client’s needs. Read more at www.phillipsrealtycapital.com.
About BG Capital Management
BG Capital Management is an asset management company acting as the representative for a private real estate investment company and their substantial portfolio. Since its inception, the partnership has acquired more than 40 properties across 10 states. The group has owned and successfully operated many different property types over the years including HUD section 8 housing, garden apartments, office, warehouse, and industrial. Founded on the original group’s success in real estate investment, BG Capital Management continues to oversee its current $80 million portfolio, while actively seeking to acquire new assets. Read more at http://www.bgcapitalmanagement.com.
About Ares Commercial Real Estate Corporation
Ares Commercial Real Estate Corporation is a specialty finance company primarily engaged in originating and investing in commercial real estate loans and related investments. Through its national direct origination platform, the Company provides a broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company originates senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value added financing on a variety of properties located in liquid markets across the United States. Ares Commercial Real Estate Corporation elected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management, L.P. For more information, please visit www.arescre.com. The contents of such website are not, and should not be deemed to be, incorporated by reference herein.