Benefit Street Partners L.L.C. Announces Closing of Three Senior Loans Aggregating $265 Million on a Multifamily Portfolio
Benefit Street Partners L.L.C. (BSP) has announced the closing of three floating-rate, cross-collateralized senior loans totaling $265 million on a multifamily portfolio. The portfolio consists of 1,262 units of class A multifamily properties across three locations in Saint John's County, Florida. Electra Capital Advisors, provided additional mezzanine loans of $60 million.
The loan's sponsor, Gatlin Development, is a repeat borrower of BSP. BSP was the original construction lender for all three assets, completed in 2023 and 2024. The loan was allocated across BSP's commercial real estate platform, with $136.4 million going to Franklin BSP Realty Trust, Inc. (NYSE: FBRT). This transaction demonstrates BSP's focus on high-quality multifamily loans and their ongoing relationship with Gatlin Development.
Benefit Street Partners L.L.C. (BSP) ha annunciato la conclusione di tre prestiti senior a tasso variabile, garantiti in modo incrociato, per un totale di 265 milioni di dollari su un portafoglio multifamiliare. Il portafoglio è composto da 1.262 unità di proprietà multifamiliari di classe A, situate in tre località della Contea di Saint John's, in Florida. Electra Capital Advisors ha fornito prestiti mezzanine aggiuntivi per 60 milioni di dollari.
Lo sponsor del prestito, Gatlin Development, è un mutuatario abituale di BSP. BSP è stato il primo prestatore per la costruzione di tutti e tre gli immobili, completati nel 2023 e nel 2024. Il prestito è stato allocato attraverso la piattaforma immobiliare commerciale di BSP, con 136,4 milioni di dollari destinati a Franklin BSP Realty Trust, Inc. (NYSE: FBRT). Questa operazione dimostra l'attenzione di BSP verso prestiti multifamiliari di alta qualità e la loro continua relazione con Gatlin Development.
Benefit Street Partners L.L.C. (BSP) ha anunciado el cierre de tres préstamos senior a tipo de interés variable, garantizados de manera cruzada, por un total de $265 millones en un portafolio multifamiliar. El portafolio consiste en 1,262 unidades de propiedades multifamiliares de clase A en tres ubicaciones en el Condado de Saint John's, Florida. Electra Capital Advisors proporcionó préstamos mezzanine adicionales de $60 millones.
El patrocinador del préstamo, Gatlin Development, es un prestatario habitual de BSP. BSP fue el prestamista original para la construcción de los tres activos, completados en 2023 y 2024. El préstamo se distribuyó a través de la plataforma de bienes raíces comerciales de BSP, con $136.4 millones destinados a Franklin BSP Realty Trust, Inc. (NYSE: FBRT). Esta transacción demuestra el enfoque de BSP en préstamos multifamiliares de alta calidad y su relación continua con Gatlin Development.
Benefit Street Partners L.L.C. (BSP)는 플로리다 주 세인트존스 카운티에 위치한 1,262 유닛의 클래스 A 다가구 부동산 포트폴리오에 대해 총 2억6500만 달러 규모의 3건의 변동금리 담보 대출을 마감했다고 발표했습니다. Electra Capital Advisors는 추가로 6000만 달러의 메자닌 대출을 제공했습니다.
대출의 스폰서인 Gatlin Development는 BSP의 반복적인 차용자입니다. BSP는 2023년과 2024년에 완공된 세 자산의 원래 건설 대출자로 활동했습니다. 대출은 BSP의 상업용 부동산 플랫폼을 통해 배분되었으며, 1억3640만 달러는 Franklin BSP Realty Trust, Inc. (NYSE: FBRT)에 배정되었습니다. 이번 거래는 BSP가 고품질 다가구 대출에 중점을 두고 있으며 Gatlin Development와의 지속적인 관계를 유지하고 있음을 보여줍니다.
Benefit Street Partners L.L.C. (BSP) a annoncé la clôture de trois prêts senior à taux variable, garantis de manière croisée, s'élevant à un total de 265 millions de dollars pour un portefeuille multifamilial. Le portefeuille se compose de 1 262 unités de propriétés multifamiliales de classe A réparties sur trois sites dans le comté de Saint John's, en Floride. Electra Capital Advisors a fourni des prêts mezzanine supplémentaires de 60 millions de dollars.
Le sponsor du prêt, Gatlin Development, est un emprunteur récurrent de BSP. BSP était le prêteur initial pour la construction de ces trois actifs, achevés en 2023 et 2024. Le prêt a été réparti sur la plateforme immobilière commerciale de BSP, avec 136,4 millions de dollars destinés à Franklin BSP Realty Trust, Inc. (NYSE: FBRT). Cette transaction démontre l'accent mis par BSP sur les prêts multifamiliaux de haute qualité et leur relation continue avec Gatlin Development.
Benefit Street Partners L.L.C. (BSP) hat den Abschluss von drei variabel verzinsten, kreuzverzinslichen Senior-Darlehen mit einem Gesamtvolumen von 265 Millionen Dollar zu einem Mehrfamilienportfolio bekannt gegeben. Das Portfolio umfasst 1.262 Einheiten von Mehrfamilienhäusern der Klasse A an drei Standorten im Saint John's County, Florida. Electra Capital Advisors stellte zusätzlich 60 Millionen Dollar an Mezzanine-Darlehen zur Verfügung.
Der Darlehensgeber, Gatlin Development, ist ein wiederkehrender Kreditnehmer von BSP. BSP war der ursprüngliche Baufinanzierer für alle drei Objekte, die 2023 und 2024 fertiggestellt wurden. Das Darlehen wurde über die kommerzielle Immobilienplattform von BSP verteilt, wobei 136,4 Millionen Dollar an Franklin BSP Realty Trust, Inc. (NYSE: FBRT) gingen. Diese Transaktion zeigt den Fokus von BSP auf qualitativ hochwertige Mehrfamilienkredite und die fortlaufende Beziehung zu Gatlin Development.
- Closed $265 million in senior loans for a high-quality multifamily portfolio
- Additional $60 million in mezzanine loans secured from Electra Capital Advisors
- $136.4 million allocated to Franklin BSP Realty Trust (NYSE: FBRT)
- Continued relationship with repeat borrower Gatlin Development
- Strong lease-up performance reported for the properties
- None.
Insights
This $265 million senior loan package for a multifamily portfolio is a significant transaction in the real estate lending sector. The deal's structure, combining floating-rate, cross-collateralized senior loans with co-terminus mezzanine loans, showcases a sophisticated financing approach. The
The focus on class A multifamily properties in Saint John's County, Florida, aligns with current market trends favoring high-quality residential assets in growing suburban areas. The 1,262 units represent a substantial addition to the local housing stock, which could impact regional real estate dynamics. The continued relationship with Gatlin Development suggests BSP's confidence in the developer and the market's potential.
Investors should note that while this transaction strengthens BSP's position in the multifamily sector, the floating-rate nature of the loans could present both opportunities and risks depending on interest rate movements. Overall, this deal reflects positively on BSP's ability to execute large, complex transactions in a competitive market.
The closing of these loans on newly completed properties in the Jacksonville MSA is a strong indicator of the region's robust multifamily market. Saint John's County, part of the broader Jacksonville area, has been experiencing significant population growth, driving demand for high-quality rental housing. The successful lease-up mentioned suggests healthy absorption rates, which bodes well for the properties' performance.
However, investors should be cautious about potential oversupply risks. The delivery of 1,262 new class A units represents a substantial increase in local inventory. It's important to monitor how this influx affects occupancy rates and rental prices in the area. The fact that BSP was the original construction lender and is now providing long-term financing demonstrates confidence in the assets and market fundamentals.
The floating-rate structure of the loans is noteworthy in the current economic climate. While it provides flexibility, it also exposes the borrower to interest rate risk. This could impact property cash flows if rates rise significantly. Overall, this transaction reflects continued investor appetite for quality multifamily assets in growing suburban markets, a trend that has gained momentum post-pandemic.
This transaction highlights several key investment trends in the real estate sector. Firstly, the focus on multifamily assets aligns with the broader shift towards residential investments, driven by housing shortages and changing demographics. The class A designation of these properties suggests a targeting of higher-income renters, potentially offering more stable cash flows.
The $265 million senior loan combined with $60 million in mezzanine financing indicates a total project value likely exceeding
The floating-rate structure of the loans is a double-edged sword. In a rising rate environment, it could lead to higher returns for the lenders, but also increased risk of default if the properties' cash flows can't keep pace. The cross-collateralization provides some risk mitigation for the lender. Overall, this deal reflects a bullish stance on high-quality suburban multifamily assets, but investors should remain vigilant about market-specific risks and broader economic trends affecting the multifamily sector.
BSP allocated the loan across its commercial real estate platform, including
Michael Comparato, Head of Commercial Real Estate for BSP, commented: “This transaction is another example of the high-quality multifamily loans we're adding across our real estate platform. The properties are some of the highest quality assets delivered in the Jacksonville MSA and lease up continues to be strong. We are pleased to continue our relationship with Gatlin Development and look forward to future opportunities.”
About Benefit Street Partners
BSP-Alcentra is a leading global alternative credit asset manager offering clients investment solutions across a broad range of complementary credit strategies, including direct lending, special situations, structured credit, high yield bonds, leveraged loans and commercial real estate debt. As of June 30, 2024, BSP-Alcentra has
About Franklin BSP Realty Trust, Inc.
Franklin BSP Realty Trust, Inc. (NYSE: FBRT) is a real estate investment trust that originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located in
Forward-Looking Statements
This communication includes forward-looking statements. These forward-looking statements generally can be identified by phrases such as “will,” “should,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, any statements herein that describe beliefs, intentions or goals also are forward-looking statements. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of FBRT. These forward-looking statements involve certain risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those indicated in such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.
Our forward-looking statements are subject to various risks and uncertainties, including but not limited to the risks and important factors contained and identified in FBRT’s filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and its subsequent filings with the SEC, any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this communication are made only as of the date hereof.
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Investor Relations Contact:
Lindsey Crabbe
l.crabbe@benefitstreetpartners.com
(214) 874-2339
Source: Benefit Street Partners L.L.C.
FAQ
What is the total value of the senior loans closed by Benefit Street Partners for the multifamily portfolio?
How many units are included in the multifamily portfolio financed by BSP?
What amount was allocated to Franklin BSP Realty Trust (FBRT) in this transaction?
Who provided the mezzanine loans for the multifamily portfolio, and for what amount?
When were the multifamily properties in the BSP-financed portfolio completed?
