Commercial Mortgage Alert – Broadshore Capital Partners Targets Rental Project

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Commercial Mortgage Alert – Broadshore Capital Partners Targets Rental Project

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As seen on Commercial Mortgage Alert (www.CMAlert.com) August 21, 2020:

 

“Broadshore Capital has provided $44.5 million of debt to back the construction of an apartment property in Charlotte as it seeks to expand its presence in the multi-family development sector.

The Los Angeles investment shop closed on the loan last month for Panorama Holdings, a Charlotte firm that owns and develops commercial properties in the region. JLL advised Panorama on the debt package.

The loan will finance construction of a 314-unit apartment complex at 7100 MacFarlane Boulevard, 7 miles northeast of Downtown Charlotte. The property, dubbed Lumeo, will feature amenities including a clubhouse, a saltwater pool, a grilling area, a fitness center and a dog wash. Panorama broke ground last year and is expected to complete the project by yearend 2021.

The property is off Interstate 85, a short distance from the University of North Carolina at Charlotte. It’s within walking distance of a light-rail station connecting Charlotte with the university’s campus to the north.

The financing deal marks the first time Broadshore has originated a multi-family construction loan. The firm has begun targeting that sector in part because competition has fallen off amid the coronoavirus crisis and resulting economic downturn.

“We see the opportunity to provide capital where other lenders have pulled back,” said co-chief executive Bleecker Seaman.

In addition to construction financing, Broadshore writes non-recourse loans on transitional properties throughout the U.S. Its sweet spot is deals of $10 million to $75 million, ranging from stretch-senior to mezzanine-debt packages.

The firm originated the Lumeo loan via a separate account it manages for an unidentified state pension plan. Broadshore runs several such accounts, with a focus on high-yield debt across property types. It plans to deploy $500 million in the next 12 months across its various business lines.

Panorama derives some or all of its capital from Asian investors, including through the federal EB-5 program, which provides access to visas for foreigners who invest in certain types of development projects in the U.S.”

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