Dekel Capital Arranges $50 Million Financing for Development of 331-Unit Multifamily Property in Salt Lake City Suburb
Deal marks third JV-Equity partnership between DSI and sponsor
SANDY, Utah/LOS ANGELES – November 20, 2015 – (RealEstateRama) — Dekel Capital, a Los Angeles-based real estate merchant bank that specializes in sourcing and placing equity and debt for active middle market commercial real estate developers and investors, 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 metropolitan area. The deal was structured as a $36.1 million construction loan through Dekel Capital’s advisory practice and $13.9 million JV-Equity funded by the firm’s proprietary equity fund, Dekel Strategic Investors (DSI). Construction on the 331-unit, Class A multifamily development, located at 8400 S. State St. in Sandy, Utah, is expected to break ground before year-end and is scheduled to be completed in 18 months.
“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. “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.”
For the JV-Equity portion of the deal, DSI provided equity capital to the sponsor for the third time. DSI, a division of Dekel Capital, provides equity capital to real estate developers engaging in multifamily, senior housing, student housing and retail development projects.
“With the Pinnacle Sandy Apartments project, we were able to provide an optimal opportunity for our investment partners in a growing submarket for a much-needed housing project,” said Ronen. “The Salt Lake City market has strong fundamentals, with an unemployment rate well below the national average and strong population growth.”
Dekel Capital Advisory sourced funding for the construction loan through a national money-center bank. The loan has a 36-month term, and is at 80 percent of total project cost.
Pinnacle Sandy Apartments is situated between two of the state’s largest employment hubs, Salt Lake City and Lehi, with easy access to major thoroughfare Route 89 and two TRAX Light Rail Stations that connect residents to the Salt Lake City International Airport, Central Business District and University of Utah. The complex will feature one, two and three-bedroom units, with the average unit size at 952 square feet, and garage parking.
About Dekel Capital
Dekel Capital is a Los Angeles-based real estate merchant bank with proven expertise in capital market advisory and private equity in commercial real estate. The firm serves an elite group of commercial real estate operators, investors and developers with an exclusive, boutique approach, allowing them to create tailored solutions that address unique capital challenges. Over the past 15 years, the team at Dekel Capital has financed a combined $2 billion of structured transactions. For more information, please visit www.dekelcapital.com