3650 REIT issues $276 million in 10-year fixed rate loans in Q319

MIAMI–(BUSINESS WIRE)–3650 REIT (“3650”), an on-balance sheet lender focused on building long-term relationships by originating, servicing and managing assets from long-term and short-term fixed rate commercial real estate loans up to their maturity, funded a total of approximately $276 million in 10-year fixed rate loans in the third quarter of 2019. In addition to the previously announced $90 million loan to refinance the Renaissance Plano Hotel in Plano, Texas , the largest of recent deals include: $66 million to sponsor Keystone Property Group for the APX Morristown office complex in Morristown, New Jersey; $27 million to sponsor Audubon Communities for the Westpark Club multi-ownership apartment complex in Athens, Georgia; and more than $24 million to sponsor Hendon Properties LLC for The Forum at Grandview, a multi-tenant commercial building in Madison, Mississippi.

“As 3650’s differentiated business model gains momentum and our year-to-date momentum has accelerated, our third-quarter activity contributed significantly to our origination goal of 1.5 billion for 2019,” said Toby, co-founder and managing partner of 3650 REIT. Cob. “As more and more borrowers realize the value of aligning their outlook with a lender that does not transfer ownership of its loans to a third party, our transactions continue to reflect 3650’s strategy of working with exceptional sponsorship and to use our real estate expertise to provide inherent value to the sponsor”.

APX Morristown is a five-story, Class A office complex strategically located at 412 Mount Kemble Avenue near Morristown, New Jersey’s downtown district, offering an abundance of dining, shopping, entertainment and nightlife. APX Morristown tenants enjoy easy access to NYC Pennsylvania Station via Morristown Station, located just 2 miles from the property, as well as proximity to Newark International Airport . The building underwent extensive renovations from 2015 to 2018, consisting of an updated atrium, canopy, parking area, restrooms, elevators, and mechanical components. Notable tenants with national headquarters on the property include Berkley Surety Group, General Insurance Company, Lonza America, Louis Berger Group Inc., New York Marine and P3 Communications Inc. growth, which is expected to continue, and a significant drop in the vacancy rate. Experienced sponsor Keystone Property Group, which has worked with 3650 on previous transactions, owns eight million square feet of commercial real estate and chose 3650 for its flexible and creative loan structuring and certainty of execution. The loan will provide the borrower with the desired long-term, fixed-rate refinancing.

Located at 150 Westpark Drive in Athens, Georgia, Westpark Club consists of 244 garden-style apartments spread across 12 buildings. The resort’s attractive location, less than a mile from the intersection of Route 78 and Route 10, is close to downtown Athens and the University of Georgia campus, offering residents of boutique selections such as the Georgia Square Mall and other major retailers. The highly appointed rental complex offers a pool pavilion, sundeck, volleyball court, dog park, clubhouse and two tennis courts. The majority of units at Westpark Club were built in 2018 or renovated in recent years, and new and refreshed units feature 12-foot ceilings, oversized patio doors, and modern exteriors. The complex enjoys excellent occupancy in Athens’ fast growing rental market, and is sustained by strong management and ownership. Sponsor Audobon Communities, which acquired the property in 2015, owns more than 7,000 apartments in the southeastern United States and has already created substantial value at Westpark Club. They were looking for a long-term refinancing solution, which 3650 delivered efficiently and effectively.

The Forum at Grandview is a 216,000 square foot shopping center located off State Highway 463 at Exit 108 and Grandview Boulevard in Madison, Mississippi. It is anchored by several major tenants, including Best Buy, Dick’s Sporting Goods, HomeGoods, Malco Grandview Theatre, Michaels, Miskelly Furniture and Stein Mart. The highly visible location along I-55 is ideal for retail and restaurant tenants, and is just a 10-minute drive from Mississippi’s capital, Jackson. Madison has experienced remarkable population growth since 2014 and has seen an increase in its average household income, making the booming city ripe for investment and continued development activity. As sponsor Hendon Properties LLC sought performance security in the middle of its acquisition of the property, 3650 offered attractive, long-term, non-recourse permanent financing to achieve this without risking the loan being sold to a third party. In addition, 3650 allowed the borrower to offer a flexible financing solution to develop future off-plot projects.

About REIT 3650

3650 (“Thirty-Six Fifty”) REIT is a balance sheet lender focused on building long-term relationships by originating, servicing and managing assets from long and short-term fixed rate commercial real estate loans up to their deadline. 3650 REIT’s highly differentiated lending process, nationwide scale, and vertically integrated platform enable it to deliver tailored financing solutions, high-quality service, and reliable, client-focused results. Co-founders and managing partners Toby Cobb, Justin Kennedy and Jonathan Roth have played leading roles in shaping the CRE debt markets with a track record of success in CRE lending, mortgage banking, capital markets, servicing loans and managing distressed credit. Based in Miami, Florida, with offices in New York, Chicago, Dallas, Nashville and Los Angeles, 3650 REIT is well positioned to lend on properties located nationwide. For more information visit: www.3650REIT.com.