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H Equities Arranges Debt and Equity for SFR Assets
H Equities, a Brooklyn-based private lender, has provided $8.125 million of debt and equity financing for the acquisition of a sub-performing loan pool comprising 183 single-family rental assets in Missouri, Tennessee, Indiana, Texas and Florida.
The borrower, CapStack Partners, is a New York-based investment manager and debt advisory company. The lender group comprises a New York-based family office and an internal investor group of H Equities.
$6.8 million was provided as note-on-note financing along with $1.325 million of LP equity representing 53% of the required equity and 87% of the capital stack.
“The loan was low levered with an excellent risk-adjusted debt return,” said H Equities founder Elliot Horowitz. “The equity piece was attractive due to the outsized potential returns for our investors.”
According to Horowitz, SFRs have become one of the best performing asset classes in the U.S., especially in light of COVID-19.
For comments, questions or concerns, please contact Paul Bubny
- ◦Financing
- ◦Sale/Acquisition
