Tzadik Properties announces completion of $ 115 million in refinancing transactions on portions of its multi-family portfolio
MIAMI, FL – Tzadik Properties, a leading multi-family property management company and one of South Dakota’s largest owner-operators, recently announced the completion of more than $ 115 million in refinancing transactions for parts of Sioux Falls, SD and Rapid City, SD wallets. These transactions are part of the company’s strategy to continue its expansion and find new growth opportunities.
Led by Vice President of Capital Markets Lucas Grassano, who handled processing, and Executive Vice President and Head of Acquisitions Michael Davalos, who oversaw the search for lenders, the refinancing is part of the initial business plan. aiming to switch from short-term loans to long-term loans. in the long term and at a lower cost.
The Sioux Falls A and Sioux Falls 1 portfolios, consisting of 707 units in 18 properties and 439 units in four properties, were refinanced with Greystone. Under the new terms, Tzadik went from 6% bridging loans to 3.17% long-term interest and allocated $ 4.5 million of the proceeds to CapEx upgrades and additional funds to repay partner capital. and buy back shares.
Two other portfolios in Sioux Falls, including 459 units in four properties, and two properties in Rapid City, with a total of 261 units, were refinanced with Merchants Bank from 6% bridging loans to 3.5% loans at long term. While all three transactions were cash neutral, two of the loans resulted in CapEx holdbacks totaling $ 500,000.
“Our team takes pride in our proven approach to doing business and creating value while protecting bottom lines and being financially responsible,” said Adam Marcus Hendry, CEO of Tzadik Properties, LLC. “These refinancing operations are part of our strategies to stay efficient with our spending, which in turn fuels our continued growth.”
Tzadik entered the South Dakota market in 2018 with 721 units and has grown rapidly to currently own and operate 2,206 units. Throughout the pandemic, Tzadik remained actively investing and finding new growth opportunities. In 2020, Tzadik found new market opportunities with the acquisition of farms and ranches across the country, including 22,000 acres of income-generating ranch land in South Dakota. The team is currently working on additional refinancing operations for their portfolios in Texas and Nebraska.