Corten Real Estate Makes Preferred Equity Investment To Recapitalize Luxury Multifamily Asset in Atlanta, GA

PHILADELPHIA, PA – December 18, 2023 — Corten Real Estate Management LLC (“Corten”) provided $9.0 million of preferred equity to a partnership sponsored by Capital City Real Estate to recapitalize a 91-unit luxury multifamily asset located adjacent to the BeltLine in East Atlanta.  The capital infusion allowed for a modification of the existing senior loan, provided funding to complete the leasing of the ground floor commercial spaces and capitalized necessary reserves to allow the asset to complete its initial lease-up. The property was delivered in June 2023 and includes 91 condo-quality apartments, approximately 15,000 square feet of commercial space and structured parking.

According to Principal Matt Kattler, “Corten is excited to partner with Capital City and provide a bespoke capital solution to match the objectives of their business plan. We think they have delivered a great asset, and we are very bullish on the micro-location.”

The deal was funded through 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 said that “Despite turbulence in some segments of the real estate space, we have been actively evaluating investments for CREF II.  Identifying opportunities for the firm to offer compelling capital solutions to owners, operators and lenders that are immediately actionable is our focus – we pride ourselves on being able to read the room and deliver when it matters.”

About Capital City

Capital City Real Estate is a leading developer of high-quality, distinctly designed properties in dynamic neighborhoods throughout the mid-Atlantic and Southeast. Since 2006, they have successfully developed over 60 projects. Striving to maximize the potential of each project through diligent planning, smart design and careful execution, Capital City Real Estate’s in-house team has a wide range of expertise in project analysis, urban development, condo conversion, construction, finance and sales & marketing.

About Corten

Corten Real Estate is a private investment manager that targets middle-market preferred equity, mezzanine debt and joint venture equity investments in hospitality, multifamily, and office properties located throughout 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 is headquartered in Wilmington, DE, with satellite offices in the Philadelphia, PA and Chevy Chase, MD.