National scope. Local knowledge.
Metric Multifamily Portfolio
$27,000,000 Acquisition Financing
Austin, TX | June 2022
Thorofare Capital has funded a $27,000,000 short-term, floating rate acquisition loan for Metric Multifamily Portfolio, a 4-property, 184-unit multifamily portfolio and 20,272 SF of retail space in the northeast sub-market of Austin, Texas.
At the time of closing, the properties were 98% occupied. Thorofare did not underwrite the retail income in its analysis.
The sponsor will be implementing a full scope renovation program to bring the properties to Class B quality. The Austin market currently has a shortage of affordable rentals, and as such, the sponsor should be able to recognize significant rent increases.
The Austin Multifamily market was 7.10% vacant with 12-month delivered units of 13,411 and 12-month absorption of 13,087, at the time of the loan’s origination. Rent growth over the last 12 months (from the time of loan origination) had been 13.7%, with future projected rent growth of 12.5% over the next two years. The Austin metro ranked 2nd in the nation for apartment demand over the last 12 months, according to CoStar.
The loan carries an initial term of three years with one extension option subject to performance milestones and includes a future-funding structure of proposed CapEx to renovate the interiors, exteriors, and common areas of the properties.
The sponsor is a group of local private investors with a collective 30 years of experience in the multifamily development, acquisitions, and management business spanning more than 9,000 units. An affiliate of the borrower will handle the day-to-day property management and renovations.