Brooklyn, NY H Equities, a Brooklyn N.Y. based private lender, has provided $8.125 million of debt and equity financing for the acquisition of a sub-performing loan pool comprising 183 single-family residential rental assets in Missouri, Tennessee, Indiana, Texas and Florida.
The borrower, CapStack Partners, is a NY based investment manager and debt advisory company. The lender group comprises a N.Y. based family office and an internal investor group of H Equities. $6.8 million was provided as note-on-note financing along with $1.325 million of LP equity representing 53% of the required equity and 87% of the capital stack.
“The loan was low levered with an excellent risk adjusted debt return,” said H Equities founder Elliot Horowitz. “The equity piece was attractive due to the outsized potential returns for our investors."
According to Horowitz, single family residential assets (SFR’s) have become one of the best performing asset classes in the U.S., especially in light of COVID, where renters may not want to live in apartment buildings and want more open space. “The Southeast where the properties are located has become increasingly attractive,” said Horowitz, a private lender and an investor in multi-family, mixed-used, land, industrial and SFR properties across the Northeast and Southeast regions of the country.