Bexley Lake Forest
Phillips Realty Capital Corp. has secured $40 million in long-term financing from New York Life Insurance Co. for Weinstein Properties’ acquisition of a Class A multifamily rental community 32 miles north of Dallas.
Weinstein Properties purchased the 334-unit Century Lake Forest, to be rebranded as Bexley Lake Forest. The property is located at 5201 Collin McKinney Parkway near downtown McKinney, Texas. This represents the third community Weinstein Properties has acquired in the Dallas-Fort Worth market and ninth in the Lone Star State. The company is also maintaining its position as one of the largest rental property owners in other markets such as Richmond, Va.
Certainty of execution
“It is a very competitive landscape as it relates to acquiring multifamily properties,” Phillips Realty Capital Managing Director Charles DuBose, who structured the long-term, fixed-rate loan, told MHN. “A distinguishing factor that separates a winning bid from a losing bid, outside of price, is certainty of execution. For the seller, [that means] certainty that the deal will close, and for the borrower, confidence that the loan will close within the time frame set within the purchase contract. In this case we [at] Phillips Realty Capital were able to analyze the submarket and asset value, underwrite the deal and turn our loan request into a quote and term sheet in very short order.”
He added that Phillips Realty Capital was fortunate to benefit from a borrower and lender who were already familiar with one another. “So getting the borrower comfortable with the closing time frame was achievable,” he continued. “Knowing the terms of loan were not going to change was also key, which allowed Weinstein to incorporate the financing into their bid with a solid comfort level. Additionally their reputation as a buyer that does what they say they will do was instrumental to the success of this transaction.”
Weinstein Properties has worked with Phillips Realty Capital to finance communities in its home state of Virginia, as well as in its expansion into both the Austin and Dallas markets of Texas, said John Lancaster, Weinstein Properties’ co-president & chief financial officer. “Phillips has successfully represented our family-owned and operated business to the capital markets,” he said. “In this case, they once again successfully managed the financing process with the lender to ensure a smooth, on-time closing.”
“Weinstein has a stellar reputation, and this property is well suited for their portfolio,” DuBose noted. “New York Life Real Estate Investor’s Dallas office was familiar with the property and Weinstein’s business model, thus creating the recipe for another successful transaction. We were thrilled to be part of the deal team.”
Image courtesy of Philips Realty Capital