Chicago, IL (April 16, 2019) – Pearlmark today announced it has closed on an $8.4 million mezzanine loan investment for the development of Medistar Grand, located southeast of the Houston Medical Center. The 326-unit apartment project will be developed by locally-based Medistar Corporation.
The investment was originated by Pearlmark and made on behalf of Pearlmark Mezzanine Realty Partners IV, L.P. (“Mezz IV”). A senior construction loan was provided by Bank OZK (formerly known as Bank of the Ozarks). JLL represented the borrower in securing both the senior and mezzanine financing.
Bill Swackhamer, Managing Director of Pearlmark, arranged the transaction. Mr. Swackhamer commented, “We view this project as an opportunity to invest in a high-quality multifamily development close to the Houston Medical Center, with a strong local sponsor.”
Doug Lyons, Managing Principal and Head of Debt Investments for Pearlmark, further commented, “Medistar’s outstanding track record for premier development in the Houston Medical Center market with its strong continued growth in jobs and infrastructure are defining characteristics of this investment.”
Mezz IV is the firm’s exclusive mezzanine investment vehicle, meeting borrower demand for mezzanine debt solutions on refinancings, recapitalizations, acquisitions, and selective development projects. Mezz IV is targeting a broad range of domestic commercial real estate assets and is flexible to accommodate stabilized cash flow, bridge/transition, and construction/development business plans.
Pearlmark is a Chicago-based investment firm that targets domestic core and value-add real estate opportunities via commingled funds, separate accounts and joint venture arrangements. Since inception in 1996, Pearlmark has sponsored more than a dozen investment programs for institutional and high net worth investors and completed 542 real estate equity and debt transactions representing in excess of $13.3 billion in gross investment value. Pearlmark is dedicated to creating value for investors and offers a range of investment opportunities across the various property types (office, industrial, multifamily) in both local and national markets. For more information, please visit https://www.pearlmark.com.