Wharton Gladden Closes $22 Million in Multifamily Debt
Algenon Cash, managing director of real estate investment banking group Wharton Gladden & Company, announces today the firm has closed the first quarter of this year with a total of $22 million in multifamily debt financed. In recent years, financing real estate has been challenging due to the market softness triggered during the “Great Recession”. Wharton Gladden’s extraordinary success in the first quarter is an indication that there is a rebound in real estate transaction volume and growing stabilization in the capital markets.
Wharton Gladden focuses on building relationships, working to support clients’ creative spirit, growth opportunities, and long-term sustainability. “Wharton Gladden has a simple purpose and that is to support our clients – we are determined to fulfill that purpose in good and bad times,” said Cash.
During the first quarter, Wharton Gladden structured and closed a $12 million debt facility secured by a portfolio of distressed apartment properties in Washington, D.C. The sponsors had the unique opportunity to purchase four defaulted mortgages collateralized by multifamily properties in the nation’s capital. Wharton Gladden advised the sponsor and existing financial institution, negotiated the discounted purchase offer, and secured a private equity capital partner to provide the debt.
Wharton Gladden also provided a $10 million bridge loan for the acquisition of a 240-unit apartment complex in Raleigh, NC. The property was in distress with an uncomfortably high vacancy and deferred maintenance. Wharton Gladden secured the capital needed to acquire the asset, implement capital improvements, and help the sponsor to develop a turnaround plan focusing on new property management and marketing strategies.
The ongoing depression in the national housing market is motivating investors to shift their attention to multifamily properties. This new emerging trend is pushing up the valuation of apartment complexes in most submarkets. Opportunely, the market has seen resurgence from investors searching for alternative assets that yield cash flow. This renewed interest is driving a rebound in transaction volume and institutions have capital allocated for real estate.
According to Cash, “Wharton Gladden’s pipeline is at the highest level that it has been in three years, which is encouraging to our clients, investors, and partners.”
About Wharton Gladden & Company:
Wharton Gladden & Company is a uniquely designed boutique investment banking firm that specializes in providing strategic advisory services, underwriting, capital placement and private equity for a diversified client base that includes corporations, real estate developers, financial institutions, investors, municipalities and high net worth individuals.