Los Angeles-based Dekel Capital has placed $50 million in financing for the construction and development of the Pinnacle Sandy Apartments in the southeast corridor of the Salt Lake City, Utah, metropolitan area.
The deal was structured as a $36.1 million construction loan through Dekel’s advisory practice and $13.9 million in joint venture equity funded by the firm’s proprietary equity fund, Dekel Strategic Investors (DSI).
The loan has a 36-month term, and is at 80 percent of the total project cost. Dekel sourced funding for the construction loan through a national money-center bank but did not immediately respond to a request to disclose the bank and sponsor’s identity.
Plans filed with the Sandy City Planning Commission however reveal Castlewood Development as the developer. The plans call for a 331-unit, multifamily development made up of seven four-story buildings and a proposed 20,580 sq ft of commercial office and retail space.
The development, at 8400 South State Street in Sandy, Utah, is expected to break ground before year-end and is scheduled to be completed in 18 months. The complex will feature one, two and three-bedroom units, with the average unit size at 952 sq ft, and garage parking.
“The Pinnacle Sandy Apartments development offered a unique opportunity for our firm to not only provide capital advisory, but also partner with experienced investors on a well-positioned project,” said Shlomi Ronen, managing principal and founder of Dekel Capital, in a statement. “The structure of our firm allows us to provide our clients with a complete financial solution for their projects, from acquisition to development and stabilization.”
Dekel’s equity in the deal represents its third time commitment to the sponsor. DSI, a division of Dekel Capital, provides equity capital to real estate developers engaging in multifamily, senior housing, student housing and retail development projects.
In September, Dekel arranged a $31 million bridge loan from Industrial and Commercial Bank of China to developer AMI Real Estate to refinance the existing debt on Universal Lofts, a 67-unit creative office condo community located in the Universal City area of Los Angeles.
Dekel specializes in sourcing and placing equity and debt for active middle market commercial real estate developers and investors. The firm has engaged in a combined $2bn of structured transactions for developers, operators and investors, over its 15-year history.