Corten Real Estate Makes Preferred Equity Investment Recapitalizing Multifamily Property in Wilmington, NC

PHILADELPHIA, PA – April 3, 2024 – Corten Real Estate Management LLC (“Corten”) provided $15.25 million of preferred equity to recapitalize Waterleigh, a 248-unit garden-style multifamily asset in the Leland submarket of Wilmington, NC.  The capital infusion bridged the gap in the capital stack and allowed for a term extension from the existing senior lender. Delivered in 2021, the property is fully stabilized, and the sponsor has successfully grown net operating income during its ownership period.

Principal Matt Kattler, who leads multifamily investment efforts, stated, “Corten is excited to provide another tailored preferred equity solution in a tailwind market. The sponsor has done a great job operationally but, unfortunately, had a loan maturity when the capital markets were not receptive to a sale. Our capital infusion provides the time needed to execute their business plan and sell or refinance in an improved environment.”

The deal was funded by Corten Real Estate Fund II LP (“CREF II”), a discretionary vehicle that is actively making preferred equity and mezzanine debt investments in multifamily, hospitality and office-to-residential conversions in the United States.

Managing Partner P.J. Yeatman added, “We are happy to provide a runway to solid operators of Class A products in locations with attractive fundamentals.  Our CREF II investment mandate gives us the latitude to do just that.”

About Corten

Corten Real Estate is a private investment manager that targets middle-market preferred equity, mezzanine debt and joint venture equity investments in properties located across the United States. Corten’s sector expertise and ability to invest up and down the capital stack allow it to provide tailored capital solutions to operating partners and sponsors looking to execute value-added business plans. Corten has offices in the Philadelphia, PA, Wilmington, DE and Chevy Chase, MD.