NewPoint Provides $35.3 Million in Bridge Financing for Multifamily Acquisition in Texas
Round Rock, TX (October 20, 2022) - NewPoint Real Estate Capital LLC (“NewPoint”) has provided a $35.3 million bridge loan to facilitate the acquisition and lease-up of Siena Round Rock on behalf of River Rock Capital, a private real estate investment firm based in New York. The newly-built, 198-unit multifamily community is located in Round Rock, TX, approximately 27 miles northeast of downtown Austin. NewPoint worked with Judah Hammer, Managing Director, and Daniel Neiss, Vice President, at Meridian Capital Group, who represented the borrower on the transaction.
“This was a true ‘time is of the essence’ closing – within 32 days from signed application. From the onset of the process, Judah Hammer and the Meridian team were tremendously instrumental in expediting the process and achieving success,” says Brian Skurnik, Managing Director of Proprietary Lending at NewPoint. “This transaction is a testament to the strength and experience of the NewPoint and Meridian teams, the asset and the sponsorship.”
Siena Round Rock began leasing in January 2022 and was more than 95% leased by August. The two-year floating-rate bridge loan features three one-year extension options. River Rock plans to pursue permanent Agency or HUD/FHA financing once stabilized.
“This transaction represented an opportunity to acquire a near-stabilized property in the rapidly growing Round Rock market, which is one of the more affordable submarkets north of Austin,” says Marc Fried, Managing Principal at River Rock Capital.
“Swift leasing velocity – which topped 40 units per month in May and June – is demonstrative of the sheer demand for a rental property of this caliber and price point in the Austin MSA,” adds Mitchell Hammer, Managing Principal at River Rock Capital. “NewPoint has paved a clear path to low-cost permanent debt, and Sienna Round Rock will offer significant value to our residents and investors for years to come.”
Siena Round Rock is well-located 6.5 miles from I-35, which affords easy access to the downtown Austin and North Austin business corridors, home to major employers like Apple, IBM, Tesla, Samsung and Oracle. The property features studio, one- and two-bedroom units with granite countertops, walk-in closets, washers and dryers, high-speed fiber internet, and Ring video doorbells. Community amenities include a resort-style swimming pool with beach entry and cabanas, a dog park with wash station, a fitness center with yoga room, billiards, package lockers and outdoor grilling stations.
River Rock Capital was formed in 2013 and has since acquired over 5,000 units.
About NewPoint Real Estate Capital
NewPoint Real Estate Capital LLC (NewPoint) is a prominent commercial real estate finance company delivering lending solutions to investors of multifamily, affordable housing, seniors housing, healthcare, and manufactured housing properties nationwide. NewPoint leverages technology, data, capital, and the expertise of its industry-leading team to provide loan origination, servicing, execution, and a suite of Agency and curated proprietary products to meet the evolving needs of borrowers. In addition to being a Fannie Mae DUS®, Freddie Mac Optigo®, and HUD/FHA MAP and LEAN Lender, NewPoint also offers bridge and LIHTC/tax-exempt financing.