Mordechai Dombroff’s Suntree Investment Group has sealed $22 million of acquisition financing to purchase a hybrid multifamily property with apartments plus extended-stay hotel units in suburban Dallas, Commercial Observer has learned.
Emerald Creek Capital supplied the three-year, floating-ratebridge loan for Suntree to acquire Soka Suites in Irving, Texas, for $29.2 million. Walker & Dunlop Senior Vice President Jeremy Nussbaum arranged the transaction
“It’s unique because the hotel portion operates like a regular hotel with sort of an Airbnb feel to it because they are built-out furnished apartments,” Mike Cleaver, managing director at Emerald Creek Capital, said in a statement. “We love the hybrid model.”
Located at 1711 West Royal Lane, Soka Suites comprises 153 units, of which 60 percent are for extended-stay hotel visits and 40 percent are residential apartments. Each unit includes a kitchen with a microwave, flat-screen TV and washing machine.
“Being a unique transaction and asset type as a partial short-term stay with some traditional multifamily made this a tough task on the debt side,” Nussbaum said. “Emerald Creek understood the business plan and dug into the specifics of the deal to wrap their heads around the unique asset type to get this closed for my client.”
The deal marked Suntree’s first with Emerald Creek. Dombroff said the experience with the lender was “fantastic” and he is looking forward to working together on future transactions.
Andrew Coen can be reached at email@example.com.