KNOXVILLE, May 31, 2024 – CastleSquare’s capital markets group announced today it has arranged a $4.25 million in preferred equity for the acquisition of Adelade Apartments, a multifamily complex located in Knoxville, Tennessee.
CastleSquare worked on behalf of the buyer, a real estate asset manager headquartered in Chattanooga, TN, to secure this preferred equity investment. The sponsorship assumed a $10,500,000 Freddie Mac loan with an interest rate of 5.61% and invested $4.35 million of common equity. CastleSquare brought $4.25 million in preferred equity to complete the capital stack.
Located at 2701 Sevier Avenue in the expanding South Knoxville submarket, this garden-style complex is situated near Downtown, the University of Tennessee, and attractive employment as well as retail destinations. The South Knoxville submarket has seen rapid development and sustained high occupancy levels.
“We couldn’t be more thrilled to have a great asset like The Adelade Apartments in such a thriving market. Knoxville continues to have amazing growth since my attendance at the University of Knoxville. It’s wonderful to be back,” said an executive from the sponsorship team.
“It has been a pleasure working with the buyer to capitalize their acquisition of Adelade Apartments and we wish the sponsor great success as they begin executing on their business plan. We would like to give a special thank you to our capital provider who has shown great loyalty to us and our clients at CastleSquare over the last few months look forward to closing many more transactions together,” said Michael Khalilzad & Alanna Wojciechowski on behalf of CastleSquare.
About CastleSquare
CastleSquare is at the forefront of facilitating successful junior capital procurements for multifamily and BTR sponsors across the United States. This includes Co-GP Equity, LP/JV Equity, or Preferred Equity that is carefully sourced from one of CastleSquare’s 300+ direct capital providers. The CastleSquare team brings a wealth of experience to its multifamily sponsors, spanning +$10 billion in closed originations or capital procurements.
When procuring funding for a real estate transaction, CastleSquare conducts a tailored and tightly-controlled process that will include only a short list of qualified potential capital sources. Sponsors will experience transparency and institutional expertise that brings both comfort and confidence to the process. For more information: www.CastleSquare.com
