Pensam , a diversified multifamily real estate investment firm, has made a preferred equity investment in a portfolio of two properties located in Newnan, Georgia, one of the fastest growing submarkets in the United States. The properties, Woodland Commons and 60 Jane Lane, were acquired by TriWest Multifamily, a premier real estate investment and development firm focused on multifamily investments throughout the United States.
Both garden-style apartment communities contain 114 units, with Woodland Commons being built in 2002 and 60 Jane Lane in 1986. At closing TriWest assumed existing Freddie Mac financing, arranged a
supplemental loan from Freddie Mac, brought in new equity and rounded out the capital stack with
Pensam’s preferred equity investment.
“These two properties represent an exciting opportunity for Pensam to invest with a strong sponsor, in a
rapidly growing submarket with a value-add plan that was easily supportable,” said Ray Cleeman, Principal, Head of Capital Markets and Lending. “This investment is a perfect example of how our flexible
Preferred Equity program can accommodate a wide range of investment goals. In this transaction we were able to provide capital to a sponsor assuming Agency loans and seeking to unlock incremental
liquidity in their assets as they build to a long-term improvement thesis.”
Both properties will undergo significant, multimillion-dollar value-add capital programs with a focus on
driving rental premiums to current property rates. Improvements will include unit interior upgrades such as granite countertops, new cabinets, stainless steel appliances, vinyl wood plank flooring and updated
fixtures and backsplash. Additionally, the properties will benefit from upgrades to property amenities and
exterior and common areas, as well as the addressing of some deferred maintenance.
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