Croatan Investments Makes $3.2MM Preferred Equity Investment in Sutter Ranch
April 1, 2021

VIRGINIA BEACH, VA (April 1, 2021) – Croatan Investments (“Croatan”), a multifamily investment manager for private wealth, institutional, and retail capital, closed on a $3.2 million preferred equity investment in Sutter Ranch.1 The asset, a 228-unit garden-style apartment community built in 1995, is located in north Houston.

“Based on Croatan’s deep knowledge of the Houston market, our extensive value-add experience, and our partnership with an experienced local sponsor with an equity investment twice the size of Croatan’s position, we believe that our preferred equity position in this asset will provide an exceptional risk-adjusted return for our investors,” said Paul Van, Chief Executive Officer. “Having closed on preferred equity investments with both Fannie Mae and Freddie Mac, Croatan is well positioned to continue taking advantage of the attractive yields available through preferred equity placements.”

The sponsor is purchasing the asset with a 10-year Freddie Mac senior loan with 4 years of interest only payments. When combined with the senior loan, Croatan’s preferred equity position represents 77.5% loan-to-cost, inclusive of the capital expenditure budget, on a last-dollar basis. The capital budget of $1.95 million includes interior unit renovations, which should result in a modest increase in rents, as well as enhancements to the clubhouse, pool area, access gates, and landscaping. The sponsor has selected a regional property management firm that currently manages over 23,000 units.

1 This does not constitute an offer to sell or the solicitation of any offer to buy securities, nor does it constitute investment advice.

About Croatan Investments

Croatan Investments is a private equity real estate manager focused on multifamily investments. We have a passion for uncovering new opportunities with excellent intrinsic value. Founded in 2004, our track record is built upon our opportunistic nature, agnostic approach, and nimble execution. We adapt our strategy across all stages of the market cycle, maintain investment flexibility to consistently achieve attractive risk-adjusted returns, and preserve the trust of our investors.

Our firm is comprised of real estate professionals who intimately understand our target markets, continually assess the dynamic multifamily landscape, and skillfully execute on each asset’s business plan. Our proven success is a reflection of our commitment to excellence, discipline, and expertise.

Headquartered in Virginia Beach, VA, Croatan has team members operating in Austin, Dallas, Atlanta, New York City, and Singapore. Our portfolio currently consists of multifamily assets across the Mid-Atlantic and Sun Belt regions. Croatan Investments is proud to be a certified minority-owned company.

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