US: Commercial real estate firm Jones Lang LaSalle (JLL) has secured a $271.9 (£214.8) million recapitalisation for an eight-property BTR residential portfolio spanning Arizona, Colorado, and Texas.
The deal supports NexMetro, a Phoenix-based BTR developer and creator of the Avilla Homes brand, as it continues to expand in the Sun Belt region.
JLL’s capital markets team, led by Kevin MacKenzie, Michael Joseph, Brad Miner, Matthew Putterman, Chris Shea, Caroline Novak, and Weston Nearon, arranged the financing on behalf of NexMetro.
The transaction includes $206 (£162) million in loan financing, which involves taking over existing loans, and an additional $65.9 (£52.1) million in new investment from Stockbridge, a real estate investment management firm.
The portfolio consists of eight rental communities developed between 2018 and 2019, with a total of 1,061 units.
The properties include Avilla Camelback Ranch, Avilla Centerra Crossing, Avilla Deer Valley, Avilla Lehi Crossing, and Avilla Meadows in Arizona, Avilla Buffalo Run in Commerce City, Colorado, and Avilla Northside and Avilla Heritage in the Texas cities of McKinney and Grand Prairie.
The recapitalisation allows NexMetro to return capital to investors while advancing its development pipeline, which includes 60 projects across the Sun Belt at various stages of completion.
In addition to this deal, JLL recently closed a previously announced financing round for NexMetro, securing $78.7 (£62.2) million in equity from Artemis and $160 (£126.4) million in debt from Blackstone, both investment management firms.
That financing round covered four additional BTR properties in Arizona and Colorado. With this latest transaction, the 12-property NexMetro portfolio has been recapitalised with a total of $145 (£114.6) million in equity and $366 (£289) million in senior debt.
