Sunrise Realty Trust Invests $14.1 Million in Senior Loan for an Austin Multi-Family Development
Sunrise Realty Trust (SUNS) has invested $14.1 million in a senior secured mortgage loan to refinance Jovie Belterra, a 150-unit 55+ active adult multi-family rental development in southwest Austin.
An additional $21.1 million for the total loan amount was contributed by an affiliated fund. The Project occupies over 140,000+ net rentable square feet within the Belterra Master Planned Community in Dripping Springs, Hays County, a high-growth area in Texas.
Wilson Capital, an Austin-based developer, is managing the Project, which features resort-style amenities and is expected to complete in Q3 2024.
CEO Brian Sedrish highlighted supply and high demand for such properties in Texas, suggesting strong risk-adjusted returns for investors.
- Investment of $14.1 million in a secured mortgage loan.
- Location in Hays County, one of the fastest-growing areas in Texas.
- Development managed by Wilson Capital, a reputable local developer.
- Expected project completion in Q3 2024.
- Anticipation of strong risk-adjusted returns due to high demand.
- Dependence on the successful completion of the Project by Q3 2024.
Insights
The investment by Sunrise Realty Trust in Jovie Belterra underscores the company’s strategic focus on senior secured mortgage loans in the Southern United States. With
From a financial standpoint, the project benefits from being in one of the fastest-growing counties in the U.S., Hays County, which bodes well for future occupancy rates and rental income stability. The senior loan structure provides a lower-risk profile for Sunrise Realty Trust, as senior loans typically have the highest claim on assets in the event of a default. Investors should also note that the loan is for the refinance of an already partially completed project, suggesting reduced development risk.
However, investors should consider potential risks, such as economic downturns or changes in demographic trends that may affect demand for senior housing. Additionally, the competitive landscape for real estate lending in high-growth areas can influence returns.
Overall, this transaction aligns well with Sunrise Realty Trust’s strategic objectives and market focus, making it a potentially beneficial addition to their portfolio, especially considering the demographic trends favoring senior housing.
The choice to invest in a 55+ age-restricted multi-family development in Austin reflects broader market trends towards specialized housing for aging populations. This demographic shift is significant as baby boomers age and look for lifestyle-focused living options. The inclusion of resort-style amenities caters to the increasing demand for high-quality, community-oriented living spaces.
Hays County’s rapid growth, coupled with a limited supply of active adult rentals, suggests that Jovie Belterra is well-positioned to attract strong interest. For retail investors, understanding these demographic and geographic factors is essential. The area's growth is not just a local phenomenon but part of a larger national trend towards suburban expansion in fast-growing regions, often driven by retirees and remote workers seeking quality of life improvements.
Additionally, this project illustrates a strategic allocation of capital in real estate sectors that are less susceptible to economic fluctuations compared to other commercial real estate segments like office or retail. Therefore, the risk-adjusted return potential appears favorable in this context.
WEST PALM BEACH, Fla., July 08, 2024 (GLOBE NEWSWIRE) -- Sunrise Realty Trust, Inc. (“SUNS” or the “Company”), an institutional commercial real estate lender focused on the Southern United States, today announced that it invested
Spanning over 140,000+ net rentable square feet, the Project is nestled in the Belterra Master Planned Community in Dripping Springs of Hays County in Austin’s Hill Country, one of the most sought-after and fastest-growing counties in Texas, ranking among the top counties in growth in the United States over the past decade.
The sponsor, Wilson Capital, is an Austin-based real estate developer specializing in the development of multi-family communities in Central Texas. The Project is comprised of two buildings featuring 150 apartments, along with a suite of resort-style, lifestyle focused amenities. One building has already been completed with the full Project expected to be completed in the third quarter of 2024.
“We are excited to close our third transaction into SUNS and add this multi-family development to our growing portfolio of pure play commercial real estate. Financing attractive opportunities in the Southern United States remains a key focus as we invest our capital,” said Brian Sedrish, Chief Executive Officer of the Company. He added, “The limited supply of active adult rentals in Texas positions this project to meet substantial demand which we believe will deliver a strong risk-adjusted return for our investors.”
About Sunrise Realty Trust, Inc.
Sunrise Realty Trust is an institutional commercial real estate lender providing flexible financing solutions for sponsors in the Southern United States. We focus on transitional commercial real estate business plans with opportunities for near-term value creation, collateralized by top-tier assets in established Southern cities or ones presenting strong growth fundamentals. For additional information regarding the Company, please visit www.sunriserealtytrust.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views and projections with respect to, among other things, the anticipated completion of the Project and the Company’s beliefs with respect to cash flows and returns related to investments in multi-family real estate. All statements other than statements of historical fact, are forward-looking statements. The Company’s forward-looking statements are generally accompanied by words such as “intend,” “will,” “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “plan,” “goal” or other words that convey the uncertainty of future events or outcomes. Forward-looking statements contained in this press release speak only as of the date of this press release. The Company disclaims any obligation to update these statements unless required by law, and the Company cautions you not to rely on them unduly. The Company has based these forward-looking statements on its current expectations and assumptions about future events, which the Company considers reasonable. However, these forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and beyond the Company’s control. Certain factors, risks and uncertainties discussed under the caption “Risk Factors” in the Company’s registration statement on Form 10, available on the SEC’s website, could cause actual results and performance to differ materially from those set forth in or implied by such forward-looking statements.
Investor Relations Contact:
Robyn Tannenbaum & Lana Ping
561-510-2293
ir@sunriserealtytrust.com
Media Contact:
Profile Advisors
Rich Myers & Rachel Goun
347-774-1125
rmyers@profileadvisors.com
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