Miami, Florida-based GenX Capital Partners, one of the premier boutique real estate investment banking firms in the U.S., structured a 90 % LTC debt/mezzanine combination for their client, Hudson Holdings.
GenX Capital Partners Managing Director, Mark McClure, continues to close deals for clients at a rapid pace, his most recent a $14.8MM debt/mezz structure that allowed Hudson Holdings the ability to refinance and reposition their HomeSuiteHome property in Kissimmee, Florida into a higher end, higher room count, more amenity-rich workforce housing asset.
“There is a tremendous need for workforce housing in and around Disney and Hudson Holding’s hotel there is consistently full with weekly and monthly rentals, and thus a massive need for additional rooms. With our west coast fund partner, we were able to structure a deal that allowed them to recap their existing debt, provide additional funds to redevelop an adjoining building adding 200 more upscale rooms, renovate and spruce up their existing 200+ rooms and essentially turn a Class C property into an attractive Class B workforce housing asset with significantly more cash flow, all while giving them the leverage to drive up their IRR. Furthermore, this structure will allow them to double their overall valuation in the next 18 months,” McClure stated.
Led by Steve Michael and Andrew Greenbaum, Hudson Holdings is a Delray Beach-based developer with an emphasis on large, historic, adaptive reuse projects. They currently have sizable assets in downtown Cincinnati, Kansas City, Louisville and St. Louis in various stages of redevelopment. Most notably, however, is their recent approval for a $135 million, 400,000 square foot, mixed-use, upscale development in Delray Beach that took more than 5 years to assemble.
About GenX Capital Partners
GenX Capital Partners specializes in investing and securing LP and GP equity for viable commercial real estate projects (most notably multifamily, hospitality and mixed-use), utilizing “under the radar” private equity funds in the U.S. and abroad many developers and brokers didn’t know exist. And while GenX Capital Partners has underwritten equity checks from $2 million to more than $10+ million for such major operators as Hudson, Stark Enterprises, Millennia Companies, etc., and have the ability to capitalize deals in excess of $300 million, their bread and butter is midsize real estate developers and operators looking for programmatic equity partners who can contribute checks in the $1 million to $20 million range.
“We have cultivated strong relationships with equity groups in the U.S. and Europe that don’t advertise their services but are very active in the LP and GP equity space, and this allows us to move a lot quicker than other equity underwriters and create more options. However, we have become more active in acquisitions for our own account, acquiring and re-positioning opportunistic residential developments, hotels and stalled multifamily projects in select geographic locations, primarily the East Coast. We are now looking to invest more of our own funds into deals we can control while still deploying equity capital from our investment partners like we have the past several years. We are essentially looking to increase our own portfolio while investing and securing equity and bridge equity for seasoned clients”, McClure ended.
Closed Equity for $5.885MM Multifamily Acquisition