Tzadik Properties, LLC, an industry-leading multifamily property management company and one of the largest owner-operators in South Dakota, recently announced the completion of more than $115 million in refinancing transactions for portions of its Sioux Falls, SD and Rapid City, SD portfolios. These transactions are part of the company’s strategy to continue expanding and finding new growth opportunities.
Spearheaded by Vice President of Capital Markets Lucas Grassano, who handled the processing, and Executive Vice President and Head of Acquisitions Michael Davalos, who oversaw the lender sourcing, these refinancings are part of the original business plan to move from short-term loans to long-term, lower-cost debt.
The Sioux Falls A and Sioux Falls 1 portfolios, comprised of 707 units in 18 properties and 439 units in four properties, were refinanced with Greystone. Under the new terms, Tzadik moved from 6% interest bridge loans to 3.17% interest long-term loans and assigned $4.5 million of the proceeds for CapEx improvements and additional funds to return partner capital and buy back shares.
Two more portfolios in Sioux Falls, including 459 units in four properties, and two properties in Rapid City, with a total of 261 units, were refinanced with Merchants Bank, moving from 6% bridge into 3.5% long-term loans. While these three transactions were cash neutral, two of the loans allowed CapEx holdbacks totaling $500,000.
“Our team prides itself on our proven approach to close deals and build value while protecting the bottom line and being financially responsible,” said Tzadik Properties, LLC Chief Executive Officer Adam Marcus Hendry. “These refinancing transactions are part our of strategies to remain efficient with our expenses, which, in turn, fuels our constant growth.”
Tzadik entered the South Dakota market in 2018 with 721 units and has quickly expanded to own and operate 2,206 units currently. Throughout the pandemic, Tzadik has remained actively investing and finding new growth opportunities. In 2020, Tzadik found new market opportunities with the acquisition of farms and ranches across the country, including 22,000 acres of income-producing ranch lands in South Dakota. The team is currently working on additional refinancing transactions for their portfolios in Texas and Nebraska.
About Tzadik Properties, LLC
Tzadik Properties, LLC is a growing, innovative and driven real estate and property management company based in Miami, Florida. Since its formation in 2007, Tzadik has managed more than $1 billion in apartment complexes, over 15 million square feet of commercial real estate, and more than 19,000 units in over 20 states. Through excellent management, a focus on company culture, and a tech-driven style of operating, Tzadik has established a reputation for “Building Lasting Relationships.” In 2020, Tzadik acquired JM Real Estate, Inc., a full-service, commercial property management, leasing, sales and investment acquisition company that is located in Brevard County, Florida, and serves from Titusville to Palm Bay. For more information about Tzadik, visit https://tz-m.com or call (305) 770-6383.