Key facts
- Grubb Properties has formed Link Apartments REIT by consolidating multiple legacy funds.
- The new REIT is valued at approximately $1.9 billion and comprises over 5,600 apartments across 45 properties.
- The company secured $617 million in financing for the portfolio recapitalization.
- A significant portion of the financing was allocated to the 8 Carlisle multifamily project in Manhattan.
- The formation of the REIT aims to enhance financing capabilities and operational efficiency.
Charlotte-based Grubb Properties has established a new non-traded multifamily real estate investment trust (REIT) named Link Apartments REIT. This entity was formed through the consolidation of several legacy funds, encompassing more than 5,600 apartments across 45 properties and valued at approximately $1.9 billion.
The creation of the REIT was accompanied by a $617 million recapitalization of the portfolio. Grubb Properties also secured a $300 million senior construction loan from Maxim Capital Group and a $77 million mezzanine loan, co-originated by GreenBarn Investment Group, Skylight Real Estate Partners, Axonic Capital, and Meadow Partners, to fully finance its Manhattan multifamily project, 8 Carlisle.
Emily Ethridge, a Grubb Properties spokesperson, stated that the REIT was established to create a vehicle with a larger balance sheet, enabling access to greater financing, while also simplifying operations. The 8 Carlisle project is a 64-story tower with 462 apartments, expected to top out construction this month.
JLL, a global brokerage, facilitated the series of transactions involved in the portfolio recapitalization. The move by Grubb Properties occurs as the multifamily sector shows signs of recovery, with strong apartment absorption rates in the second quarter and a slowdown in new housing construction providing additional support for developers.