BEVERTON, OR – Walker & Dunlop, Inc. announced that it arranged bridge financing in the amount of $51,884,493 for The Rise Central, a newly built, 230-unit apartment project in downtown Beaverton, Oregon.
The Rise Central is located in a burgeoning business district less than ten miles from downtown Portland, Oregon. Featuring excellent walkability and proximity to the Central MAX light-rail station, the property has unparalleled access to nearby amenities and major employers including Nike’s World Headquarters and Intel’s Hillsboro campus. Additionally, the nearby Beaverton Town Square and Cedar Hills Crossing retail centers provide lifestyle amenities within walking distance.
The Walker & Dunlop team was led by Managing Director Eric McGlynn, who has extensive experience in structuring nonrecourse bridge loans and construction loans nationwide for apartments and other property types, including build-for-rent single-family projects. To complete the transaction, McGlynn worked closely with Ryan Welch and Brian Cornellof JCR Capital, an alternative investment manager and wholly owned affiliate of Walker & Dunlop, based in Denver, Colorado. The floating rate loan includes a two-year initial term plus a one-year extension option and will provide the owners with sufficient time to complete leasing the property, which was 82 percent leased at close. The loan was bifurcated into a senior loan from JCR Capital and a mezzanine loan provided by a third-party partner.
Said Mr. McGlynn, “It was a pleasure working with the JCR team to complete this complex financing for one of our largest clients, Rescore. During the pandemic, the bridge lending market has become quite fragmented. After marketing the transaction to several lenders, we found JCR to have the most competitive combination of loan proceeds and pricing. They reacted very quickly and were flexible in structuring the transaction.”
The Rise Central consists of two buildings with five and six stories respectively, and contains a mix of studio, one-, and two-bedroom units averaging 754 square feet. Community amenities include a rooftop terrace, 3,000 square-foot fitness center, a penthouse lounge, bike storage, and garage parking with electric vehicle charging stations. Units feature nine-foot ceilings, premium fixtures and finishes, oversized windows, and in-unit washers and dryers. Select homes also feature private decks. The ground floor of the property includes approximately 5,800 square feet of retail, which is primarily leased to a retail tenant and restaurant.
The project is owned by Rescore Property Corp and was developed in partnership with local developer Rembold Companies. Rescore is a private REIT managed by Encore Capital Management, manager of three fund vehicles with over $3B AUM and whose principals are Art Falcone and Tony Avila. Encore, based in Boca Raton, Florida, has 20,000 residential units under ownership and/or development.