Refinances Over $122 Million
Jul 24, 2017
Our systems work, and we want the chance to prove it to other owners.” says David Runyon, Chief Visionary Officer.
Tzadik Management closed out a busy second quarter by closing on two separate re-finances totaling over $122,000,000. These deals come at a time where Tzadik believes the markets are at or very near all-time highs. Spearheading the refinances for Tzadik was Vice President, Michael Davalos. “These two deals represented a challenge, both logistically and mentally. Coordinating efforts between 15 different properties in 9 different cities proved to be hard work for everyone involved. In the end, we were pleased with our efforts and succeeded in hitting our targets,” said Michael Davalos.
The first of the pair of re-finances closed in early June for a total of $14 million and re-capitalizes one of our assets in Tampa. It also paves the way for permanent financing in the next 14-18 months. “The property has taken off from when we initially acquired it” said Chief Investment Officer, Alex Arguelles. This new round of funding will allow Tzadik to lower costs as well as complete all capital improvements as planned.
Tzadik also completed a massive re-capitalization of their initial portfolio with a CMBS backed loan for $108 million. This deal helped to dramatically lower costs, increase ownership equity, and also provided all the funds needed to complete capital improvements across the entire portfolio of 2,383 units for the next ten years. This refi hopes to help guide the company through the projected rigors ahead, “It helped us be financially responsible by strategically repositioning ourselves as long-term multifamily apartment holders, and bracing ourselves for what we view to be quite an uncertain marketplace in the next few years. We believe as the current cycle comes to an end, Tzadik will outperform the overall market and look to never stop growing due to economic forethought” said Chief Executive Officer, Adam Hendry.
With these refinances closed, the company is concentrating its efforts on maximizing their current portfolio of real estate as well as expanding into the world of third party management. “It’s the next logical step for us to take as a company. We want to take everything we have learned in managing class C and B multi family and help other property owners who are frustrated with this space. Our systems work, and we want the chance to prove it to other owners.” says David Runyon, Chief Visionary Officer.
Tzadik is a fast growing, innovative, and purpose driven real estate Company based in Miami, Florida. Since its formation in 2007, Tzadik manages over $300 million in apartment complexes and over 4,500 units throughout the entire state of Florida. Through excellent management, a focus on company culture, and a tech driven style of operating, Tzadik has established a reputation for hard work, responsible management, and enviable investor gains.