#United States #Irvine #Newmark Group #Keller Investment Properties #multifamily recap

Newmark's Strategic Financing for Keller Investment Properties

In a significant move in the real estate sector, Newmark Group, Inc. has recently arranged a massive $718.5 million recapitalization deal for Keller Investment Properties. This financial maneuver involves a Single-Asset, Single-Borrower (SASB) structure, specifically designed for a 13-property multifamily portfolio spread across Arizona, Nevada, and Utah. The portfolio encompasses a total of 3,321 apartment units, showcasing the diverse investment landscape within these burgeoning markets.

The financing initiative was spearheaded by Newmark's Vice Chairman Darrin Stovall and Executive Managing Director Scot Snowball, working closely alongside Vice Chairman Bill Mott and Director John Chobanian. The lending partner for this transaction was Nomura, a key player in the financial market known for its vast capabilities.

The portfolio features notable apartment communities located in key cities such as Phoenix, Las Vegas, Salt Lake City, Ogden, Provo, and Flagstaff. This strategic financing aims to solidify Keller Investment Properties' position while simultaneously providing a sustainable debt solution that allows them to retain ownership. The transaction exemplifies how Keller continues to tap into some of the most vital growth markets in Western U.S.

Stovall emphasized, "Keller Investment Properties has created a robust multifamily portfolio across multiple dynamic housing markets. Their strategic ownership and operational vision significantly influenced this financing process. By harnessing our team's collective expertise and strong market relationships, we could present a customized debt solution aimed at meeting Keller's specific needs while attracting substantial interest from capital markets."

Keller Investment Properties, established by Scott Keller, has been a formidable presence in the multifamily housing sector for over 35 years. The firm employs a strategic, property-specific investment approach, effectively managing and operating multifamily communities throughout the Western United States. The recent recapitalization marks a substantial step, as it represents Keller's first SASB execution, which is pivotal in strengthening their financial position.

Executive Vice President at Keller Investment Properties, Matt Bowen, remarked, "This financing marks a crucial milestone for us, representing not only our first SASB execution but also providing a long-term capital solution for a significant segment of our growing portfolio. The coordination and expertise provided by Newmark and Nomura were invaluable as we navigated this process to achieve an exceptional outcome. This financing will fortify the integrity of our portfolio as we continue our unwavering commitment to the vibrant markets we serve."

The high level of institutional capital seeking opportunities in high-quality multifamily assets reinforces the confidence in Keller's portfolio performance, the underlying markets, and the overall long-term ownership strategies. Bill Mott noted, "This instance showcases the ongoing demand for multifamily properties among institutional investors, even when engaging in complex and large-scale transactions."

The properties involved in this significant deal are:

• - 80 on Gibson — Henderson, Nevada
• - Firenze Apartments — Henderson, Nevada
• - Joshua Hills — North Las Vegas, Nevada
• - VUE 5325 — Las Vegas, Nevada
• - North Union — Midvale, Utah
• - The Park at Legacy Trails — Centerville, Utah
• - Quail Cove — Layton, Utah
• - Solameer — Herriman, Utah
• - The Park at City Center — Sandy, Utah
• - Wolverine Crossing — Orem, Utah
• - Woodcrest Apartments — Flagstaff, Arizona
• - Keller at Town Square — Gilbert, Arizona
• - The Lodge Luxury Apartment Homes — Flagstaff, Arizona

This strategic recapitalization by Newmark Group not only enhances Keller Investment Properties' financial leverage but also establishes a solid foundation for future growth and operational effectiveness in the multifamily real estate sector.