Summer Street Advisors


       


FEATURED RELEASE

Tuesday
Jun192018

Summer Street Advisors (“SSA”) raises $9.6M of preferred equity for Austin apartment development by North American Properties (“NAP”)

333-unit Cedar Quest Apartments in Austin to be completed in Q1 2020 

Westport, CT (June 19, 2018) – Summer Street Advisors LLC (SSA) has announced that its Capital Markets team represented North American Properties (“NAP”) in raising $9.6 million in preferred equity capital for Cedar Quest Apartments, a $48 million development in Cedar Park, Texas.

SSA oversaw the preferred equity capital raising process and provided comprehensive advisory services during due diligence.  The capital increased the project’s debt-to-cost ratio to 85 percent, under terms and conditions that outperformed NAP’s budgeted expectations.  When combined with the senior construction loan, the all-in pricing to NAP was less than 450bps over LIBOR.

 “Summer Street Advisors has the deal experience and access to capital demanded by the competitive marketplace,” said Tim Perry, Partner and Chief Investment Officer of North American Properties, and Keith Benator, V.P. of Investments.  “Andy Murray, and his team provided the guidance and execution that helped drive this deal forward.”

 “There’s a lot of mezzanine debt and preferred equity capital looking for the right new development and redevelopment opportunities,” said Andrew Murray, Managing Director of Capital Markets at SSA.  “The key is to identify an experienced preferred equity provider who can work with both the Sponsor and the Senior Lender… This deal worked because of North American Properties’ successful track record around the country and in Cedar Park, one of the country’s fastest growing cities.”

Cedar Quest Apartments is a 333-unit luxury, class A apartment complex that commenced construction in the second quarter of 2018 and is slated for completion in the first quarter of 2020.  It is situated near the Lakeside Mall in Cedar Park, a city in the Northwest Austin area. The population of Cedar Park has grown from 48,937 in 2010 to an estimated 75,226 in 2017. North American Properties, a premier owner and developer of commercial real estate based in Cincinnati, Ohio, owns nearby East Lakeside Apartments, a successful luxury development.

About Summer Street Advisors, LLC

Summer Street Advisors LLC is a commercial real estate advisory services firm founded by Jack Mullen, an alumnus of GE Capital Real Estate. Capital Markets is headed by Andy Murray, and alumni of Lehman Brothers, O’Connor Capital, Ackman Ziff and TH Henderson.  Asset Management is headed by Chris Peters, an alumni of GE Capital Real Estate, Euro-hypo Bank and H2 Capital.  SSA offers a full range of advisory services across Transaction Management, Capital Markets, and Asset Management providing highly experienced strategic advisory services to sponsors/developers, financing institutions, debt and equity fund investment managers, insurance companies, pension funds, and family offices.  SSA’s senior team has hands on experienced across all major U.S markets and asset classes for structured equity and debt investments, including distressed assets and CMBS securities.   The SSA team has over 100 years combined CRE experience and possesses diverse institutional and entrepreneurial backgrounds. More information about the company can be found at summerstreetRE.com, or by contacting Jack, Andy or Chris at 203-293-4844.

About North American Properties

Founded in 1954, North American Properties (NAP) is a privately held, multi-regional real estate operating company that has acquired, developed and managed more than $5 billion of retail, multi-family, mixed-use and office properties across the United States. NAP has prospered through real estate booms and busts, weathering the storms through planning and execution. The strength of NAP’s balance sheet is a direct result of steadfast discipline, precise execution and the ownership position taken in each project. Headquartered in Cincinnati, with offices in Atlanta, Dallas and Fort Myers, NAP has developed 22 million square feet of commercial space and 19,000 residential units in 15 states and 67 cities. More specific to Quest, NAP has developed more than 2,800 Class A units across 9 projects in Austin, Texas. NAP has partnered with premier institutional partners including Prudential, CBRE Global Investors, The Carlyle Group, GE Asset Management, JP Morgan, Morgan Stanley, and many others.