Electra Capital Launches With Eye on Flexible Finance
The new firm is backed by its affiliation with American Landmark Apartments.
PALM BEACH, FL—Experienced multifamily real estate executives have launched Electra Capital, a boutique capital provider here.
Backed by its affiliation with one of the largest multifamily owner/operators in the country—American Landmark Apartments—the new firm plans to provide flexible, short-term multifamily financing solutions, including bridge and mezzanine loans and preferred equity and participating preferred equity investments.
The firm is led by CEO Sam Greenblatt. Joe Lubeck, CEO of American Landmark Apartments, serves as executive chairman.
The firm said it is capable of providing creative financing solutions in the $1 million to $30 million range, with LTV/LTC up to 90 percent. In addition, under its Participating Preferred Equity investments, Electra will provide up to 75% of the equity required in the transaction. The firm will focus on financing multifamily deals within the fast-growing Sun Belt region—states including Arizona, Florida, Georgia, North and South Carolina, Tennessee, Texas and Southern Virginia.
“There’s significant demand for alternative financing in the multifamily space currently and our credentials as 30-year veterans with deep geographic expertise allows us to compete with other capital providers successfully,” Greenblatt tells GlobeSt.com. “We anticipate deploying approximately $300 million in capital to sponsors by the end of 2020.”
Greenblatt comes to Electra Capital with over three decades of experience as a lender, broker and sponsor, including over 10 years serving as head of production for RAIT Financial Trust, a capital provider for bridge, mezzanine and preferred equity investments.
Lubeck is an expert in value-added and distressed real estate repositioning. Over the course of his career, he has overseen four successful multifamily portfolio builds totaling 100,000 units, with a value in excess of $7 billion.
Electra has closed on a preferred equity investment in Timber Hollow, a 198-unit apartment community located in Chapel Hill, North Carolina. The $5.3 million, three-year loan was structured to allow the sponsor, Eller Capital Partners, to execute on a value-add renovation program and pursue the necessary entitlements for future development of apartments on the site.
“After conducting a thorough analysis of the Chapel Hill submarket, our team was able to expeditiously and thoroughly complete our underwriting process within a matter of weeks to successfully close the transaction within the sponsor’s expedited time frame,” Greenblatt said. “The Preferred Equity structure allowed us to remain flexible enough to complete the deal in the required timeframe and aggressive enough to meet the needs of the sponsor.”
Located at 101 Timber Hollow Court, Timber Hollow was built in 1987 and consists of one- and two-bedroom apartments ranging from 547 square feet to over 1,000 square feet. Amenities include 24-hour maintenance, a resident clubhouse, indoor basketball court, lightened tennis court, two-tier resort-style pool, free WiFi at pool area, and a 24-hour professional fitness center. The property is located just a short distance from UNC Chapel Hill and UNC hospitals.