News

Parse Capital Closes $28.3 Million Preferred Equity Investment For Chicago Multifamily Development

July 10, 2015 – Parse Capital today announced the closing of a $28.3 million preferred equity investment that will be used to partially fund the ground-up development of a 34 story, Class A mixed-use high rise, consisting of 298 residential apartments; including studios and one- to three-bedroom residences with condo quality finishes. The tower will be named Exhibit on Superior, and was designed by bKL Architects. The preferred equity investment is part of a $113.3 million financing, which also included a first mortgage loan, provided by a syndicate of banks led by PNC Bank, and equity capital provided by Magellan Development Group and MAC Management. The transaction was brokered by Daniel Kaufman and Mike Kavanau from HFF. “We are pleased to partner with Magellan on the of 165 W. Superior,” said Bill Trefethen, Managing Partner of Parse. “As one of the preeminent developers in the US, Magellan exemplifies the type of sponsor with whom we seek to partner on development deals. We look forward to working with them on future projects.” Commenting on the transaction, David Carlins, President of Magellan, said: “We selected Parse based on their outstanding reputation, and they provided an integral part of the project financing.”


About Magellan Development

Magellan Development Group has established a reputation as a prolific and accomplished developer. The company’s focus has been high-rise residential and mixed-use projects. Its principals, co-CEOs Joel Carlins and James Loewenberg and President David Carlins, have completed 21 projects totaling more than 6,800 residential units, 517,000 square feet of commercial space and have received over 60 awards for excellence within the past 16 years. Since its inception on February 27, 1996, Magellan Development Group has successfully financed more than $3.5 billion of residential, mixed-use, and commercial projects. Magellan and its affiliates have designed and developed a wide variety of other projects including commercial, institutional, government, educational, hospital and transportation projects. Magellan goes beyond designing and creating residential developments by transforming and energizing neighborhoods.

About MAC Management

MAC Management is a real estate management and development company, which specializes in office, retail and residential real estate in Chicago, Illinois. The company was founded in 1980, and since its inception has owned, managed and developed high profile properties in the River North neighborhood. “We are extremely excited about this project, and consider ourselves very lucky to be a part of this team. You could not ask for better development partners than Magellan Development and bKL Architecture.” said Dustin Cahan, a principal at MAC Management.


 

 

Parse Capital Announces Closing of a $12,277,400 Preferred Equity Investment to Fund Class “A” Multifamily Development

March 31, 2015 – Parse Capital, LLC, in partnership with The SummerHill Housing Group announce today the proposed ground-up development of a 186-unit multifamily project in Santa Clara, California. The partnership plans to develop the Class “A” luxury multifamily development and is scheduled to be leasing up in the fall of 2016. Parse Capital provided a $12.3 million preferred investment to fund the development of the apartment community, which totaled approximately $75.0 million. “Our ability to offer developers flexibility and certainty of close is key in helping our clients finance multifamily development projects successfully and expeditiously across the country” said William Trefethen, Managing Partner of Parse Capital. “In this particular case, due to SummerHills’s professionalism and deep transactional expertise we were able to complete a complex transaction in an expedited fashion. We look forward to developing our partnership together and investing in their pipeline of projects.”

SummerHill Apartment Communities is a multifamily development specialist with geographic focus in major West Coast MSA’s. They are experienced practitioners in the multifamily arena, they are keenly focused on local market trends and property fundamentals. Their competency is in identifying, sourcing and developing compelling multifamily investments in approved, research based Target Markets, including San Francisco Bay Area, Los Angeles, Orange, San Diego, and Ventura Counties as well as the Seattle metro area. The target markets demonstrate intrinsic supply constraints, strong engines for job creation and a sustained ability to attract capital. SummerHill Apartments Communities is headquartered in San Ramon, with satellite offices in Palo Alto, Seattle and Irvine.

“The Villas on the Boulevard represents a unique and compelling opportunity for SummerHill to deliver 186 units in Santa Clara in the heart of Silicon Valley near many top tech employers”, said Doug McDonald, CFO and Managing Director of SummerHill Apartment Communities. “The key to SummerHill’s long-term success has been our ability to source great development sites with strong multifamily demand fundamentals. Parse’s capital markets expertise, industry knowledge and submarket-specific knowledge provided for a smooth closing process on a complicated transaction. We look forward to growing our relationship with Parse.”

 

Parse Capital Announces Closing of a $37,686,400 Preferred Equity Investment to Fund Class “A” Multifamily Development

December 1, 2014 – Parse Capital, LLC, in partnership with JPI Companies announce today the proposed ground-up development of a 400-unit multifamily project in Anaheim, California. The partnership plans to develop the Class “A” luxury multifamily development and is scheduled to be leasing up in the summer of 2016. Parse Capital provided a $37.7 million preferred investment to fund the development “In our second transaction with JPI we were able to leverage our existing relationship and understanding of their platform along with our knowledge of the Southern California market to close quickly. We look to leverage our balance sheet and development experience with financially strong and experienced sponsors in major markets across the US.”

JPI is a national developer, builder and investment manager of Class A multifamily assets in select US markets headquartered in Texas with offices in New York, California and Arizona. With a 30-year history of successful developments throughout the major US markets and an unparalleled depth of industry specific experience, JPI stands among the most active privately held real estate companies in the country. JPI’s executive leadership team has an average of 25 years of comprehensive experience in multifamily developments ranging from low density garden apartments, mid to high density wrap and podium projects, student living housing projects and mixed use high rise developments.

“The acquisition of Jefferson Platinum Triangle marks our second transaction with Parse Capital”, said Gus Villalba, JPI Western Region Managing Partner. “The key to JPI’s long-term success has been our ability to source great development sites with strong multifamily demand fundamentals. Parse’s capital markets expertise, industry knowledge and submarket-specific knowledge provided for a smooth closing process on a large and complicated transaction. We look forward to growing our relationship with Parse.”

Jefferson Platinum Triangle is centrally located within the City of Anaheim’s prestigious Platinum Triangle District, an 840-acre transit-oriented urban development, guided by the Platinum Triangle Master Land Use Plan bringing high density, mixed-use, office, restaurant, and residential projects to the heart of Orange County inter-connected by the brand new $184 million ARTIC Amtrak Station and planned 6.4 mile long Anaheim Rapid Connection (“ARC”) guided streetcar system anticipated to be operational by 2018. ARC plans currently reflect a streetcar stop almost adjacent to Jefferson Platinum Triangle’s front door on Katella Avenue approximately 1.5 miles West of the ARTIC station and 1.5 miles East of the Disney Resort and Anaheim Convention Center.

Parse Capital Announces Closing of a $7,286,000 Mezzanine Investment to Fund Class “A” Multifamily Development

June 1, 2014 – Parse Capital, LLC, in partnership with JPI Companies announce today the proposed ground-up development of a 198-unit multifamily project in Houston, Texas. The partnership plans to develop the Class “A” luxury multifamily development with a podium style structure, and is scheduled to be completed in the fall of 2015. Parse Capital provided a $7.3 million mezzanine investment to fund the development of the apartment community, which totaled nearly $37 million. “Our ability to offer developers flexibility and certainty of close is key in helping our clients finance multifamily development projects successfully and expeditiously” said William Trefethen, Managing Partner of Parse Capital. “In this particular case, due to JPI’s professionalism and deep transactional expertise we were able to complete a complex transaction in 45 days from start to finish. We look forward to developing our partnership together and investing in their pipeline of projects.”

JPI Companies (www.jpi.com) is a national developer, builder, and investment manager of Class A multifamily assets in major US markets. JPI’s executive leadership team has an average of 25 years’ experience in multifamily developments ranging from low density garden, mid density wrap and podium, and high density mixed use communities.

“JPI’s strategy is to develop high quality multifamily communities in markets supported by strong household formations and job growth. Execution is made possible by partnering with investors with a proven track record on real estate in premiere markets. The strength and leadership of Parse Capital afforded us certainty of close”, said Ben Montgomery, JPI Southern Region Managing Partner.

“Jefferson Heights is located on the doorstep of downtown Houston, and will thrive on Houston’s incredible employment centers and wide ranging entertainment experiences. We look forward to growing our partnership with Parse Capital, and increasing our footprint in Houston.”

Parse Capital Announces Closing of a $14,700,000 Preferred Equity Investment to Fund Class “A” Multifamily Development

May 20, 2014 – Parse Capital, LLC, in partnership with DeBartolo Development, LLC, and Paces Properties announce today the acquisition of a vacant 20-story high rise office building in downtown Atlanta, Georgia. The partnership plans to redevelop the building into a 328-unit Class “A” luxury multifamily development scheduled to be completed in the summer of 2015. Parse Capital provided a $14.7 million preferred equity investment to fund the acquisition and redevelopment of the property, which totaled $53 million. “Our ability to offer developers flexibility and certainty of close is key in helping our clients finance multifamily development projects successfully and expeditiously,” said William Trefethen, Managing Partner of Parse Capital. “In this particular case, the developer required reliable execution from an experienced investor that both understood the asset strategy, and took a balanced approach to negotiating the transaction documents.”

DeBartolo Development is a real estate private equity firm that invests in market-driven ground-up developments as well as operating assets. Collectively, they have significant resources and experience successfully developing apartment communities, and currently have over 27,000 units in their portfolio. When completed, the project will feature resort-style amenities including a fitness center, lounge, outdoor pool, landscaped open spaces and streetscape improvements.

“We saw a great opportunity to repurpose a vacant office building in a prime location in downtown Atlanta where there is incredible demand for additional multifamily residences,” said Edward Kobel, President and Chief Operating Office at DeBartolo Development. “People want to live downtown and like many cities across the country there is limited supply of Class A apartments. We believe this partnership will be a tremendous success.”

Parse Capital Announces Closing of a $12,250,000 Preferred Equity Investment to Fund Class “A” Multifamily Development

January 22, 2014 – Parse Capital, LLC announces the closing of a $12.25 million preferred equity investment in an entity that is developing the second of three phases that, upon completion, will constitute a Class “A” luxury multifamily development known as Optima Sonoran Village, which is located in Scottsdale, Arizona. Scheduled to be completed in the summer of 2016, Phase II will comprise a total of three buildings, housing 400 condo-quality luxury rental units, an estimated 5,400 square feet of commercial space, and resort style amenities, including a fitness center, indoor basketball and racquetball courts, lounge and game room, two outdoor pools and heated spas, landscaped open spaces, green roofs and streetscape improvements.

“Our ability to offer developers flexibility and certainty of close is key in helping our clients finance multifamily development projects successfully and expeditiously,” said William Trefethen, Managing Partner of Parse Capital. “In this particular case, the developer required reliable execution from an experienced preferred equity investor that both understood the asset strategy, and took a balanced approach to negotiating the transaction documents.”

The project is co-sponsored by Optima, Inc. (“Optima”) and DeBartolo Real Estate Investments, LLC (“DBREI”), who have a history of partnering together on real estate development projects. Optima is an established, vertically-integrated developer of multifamily projects. DBREI, a subsidiary of DeBartolo Development, is a real estate private equity firm that invests in both development projects as well as operating assets. Collectively, they have significant resources and experience successfully developing apartment communities.

Parse Capital Announces Closing of a $8,900,000 Mezzanine Loan to Fund Class “A” Multifamily DevelopmentDevelopment

July 1, 2013 – Parse Capital, LLC announces the closing of an $8.9 million mezzanine loan to finance the development of a class “A” apartment community in Los Angeles County. Upon completion in the fall of 2014, the LEED silver, transit-oriented project will be comprised of 349 rental units housed in two, four-story buildings offering a range of living options and resort style amenities.

“Our ability to offer borrowers flexibility and certainty of close is key in helping our clients finance multifamily development projects successfully and expeditiously,” said William Trefethen, Managing Partner of Parse Capital. “In this particular case, the developer required reliable execution from a mezzanine lender that both understood the asset strategy, and took a balanced approach to negotiating inter-creditor issues with the construction lenders.


About Realm Group

The developer, Realm Group, LLC, is a partnership between Realm Real Estate, LLC, an experienced commercial real estate development company, and The Bascom Group, LLC, which develops and acquires multifamily and office properties throughout Southern California in both urban and suburban submarkets. The Bascom Group, LLC is a private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate- related investments and operating companies.