Mordechai Dombroffit is Suntree Investment Group has sealed a $22 million acquisition financing to buy a hybrid multifamily property with apartments and extended-stay hotel units in suburban Dallas, Commercial Observer has learned.
Capital of Emerald Creek provided the three-year floating rate bridging loan to Suntree to acquire Soka Suites in Irving, Texas, for $29.2 million. Walker and Dunlop Senior Vice President Jeremy Nussbaum arranged the transaction
“It’s unique because the hotel part operates like a regular hotel with a sort of Airbnb feel because it’s self-contained serviced apartments.” Mike Cleaver, managing director of Emerald Creek Capital, said in a statement. “We love the hybrid model.”
Located at 1711, west royal driveway, Soka Suites comprises 153 units, of which 60% are for extended hotel stays and 40% are residential apartments. Each unit includes a kitchen with a microwave, a flat-screen TV and a washing machine.
“Being a unique transaction and asset type as a partial short-term stay with a traditional multifamily made it difficult on the debt side,” Nussbaum said. “Emerald Creek understood the business plan and dug into the details of the deal to understand the unique asset type to close this for my client.”
The deal marked Suntree’s first with Emerald Creek. Dombroff said the experience with the lender was “fantastic” and he looks forward to working together on future transactions.
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