"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.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
