Pantzer Properties Invests in MF B Note

WASHINGTON, DC-An affiliate of New York City-based Pantzer Properties has invested in a B note participation backed by a multifamily complex in the District called The Ellington. The purchase, which principal Jason Pantzer tells GlobeSt.com, was between $10 million to $20 million, is part of the company’s plan to increase its debt and property exposure to the DC area. It is also part of the company’s new strategy of investing in B notes, he says.

“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.