"We are primarily property owners and managers, but we are exploring note purchases. We think there is a god risk-adjusted return right now to purchasing debt."
Pantzer says the firm doesn't have a specific allocation designated to this strategy, but could invest as much as $50 million. "We have a significant appetite for B notes, preferred equity and mezz financing right now."
The company expects to make additional investments in the DC area, he notes. Last year it made a preferred equity investment in the multifamily property The Grove in Arlington, VA.
It also acquired last year The Point at Fairfax, a 364-unit apartment complex in Fair Oaks, for $57.5 million from Post Forest in Atlanta.
Pantzer purchased the B note through its affiliate, Panco Strategic Real Estate Fund I. A luxury high-rise in the U Street Corridor, The Ellington is a 190-unit building located at 1301 U St. with 16,740 square feet of ground floor retail, and a 176 car parking garage. It is fully occupied.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
