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Grubb Properties combines funds into a new $1.9B apartment REIT
The new nontraded multifamily REIT was created alongside $617M of portfolio recapitalization and a separate set of financings that fully cover the Manhattan project at 8 Carlisle.
Grubb Properties has consolidated several legacy multifamily vehicles into a newly formed, nontraded managed REIT called Link Apartments REIT, valuing the combined entity at roughly $1.9 billion, according to Bisnow.
The recapitalization totals $617 million and involves more than 60 properties, including Grubb’s 8 Carlisle St. development in Manhattan. The 8 Carlisle project, a 64-story tower with 462 apartments, is expected to top out this month.
Bisnow reports that Grubb also secured additional financing in connection with its REIT structure, including a $240 million credit facility for its Link Apartments Opportunity Zone REIT, plus a $300 million senior construction loan and a $77 million mezzanine loan that fully capitalizes the Manhattan project.
Grubb said the REIT was designed in part to support a larger balance sheet for bigger financing needs, while also moving toward simplicity and efficiency. Bisnow adds that the refinancing comes as the multifamily sector emerges from supply pressure, with second-quarter apartment absorption reaching 124,600 units, among the highest in 25 years.