ACORE Capital has provided a $36.7 million loan on a multifamily asset in Austin, Texas, Real Estate Capital has learned.
The lending platform, focused on bridge loans on transitional assets, provided the floating rate, five-year loan to local borrower F&B Capital on the 344-unit Mission Hills Apartments complex at 2900 Sunridge Drive.
The financing included an initial funding for the borrower to acquire the Class B rental property, along with future funds for renovating and repositioning the property.
“The Mission Hills Apartment deal was indicative of what we do because it was a true balance sheet loan with a borrower going into an asset and adding value to it,” said Warren de Haan, manager and co-founder of ACORE.
Last year, de Haan and Boyd Fellows, former Starwood executives, began drawing up plans to launch a new lending platform, as first reported in Real Estate Capital. In May, the partners brought on two more former Starwood executives, Chris Tokarski and Stew Ward, to launch ACORE, landing the initial $1.6 billion commitment from Delphi Financial Group.
Delphi Financial Group has now extended its initial capital commitment to ACORE by $1.2 billion, bringing the Japanese insurer’s total commitment to $2.8 billion.
“The capital raised from Delphi is very flexible and allows up to be completely immersed in the bridge loan lending market,” said Fellows, one of ACORE’s four managing partners, adding that the funding allows the firm to increase loan size, which will typically range between $50-150 million.
The former Starwood execs have said they plan to originate as much as $5 billion of floating-rate bridge loans on transitional properties over the next several years, with double-digit return targets.
“ACORE is a one-stop shop balance sheet lender, and we are not directly hinged to what’s going on in CMBS and new bank regulations,” de Haan noted.
ACORE has closed or executed agreements to fund or acquire approximately $2.9 billion on more than 47 loans.