GE Commercial Finance Real Estate, Stamford, Connecticut, committed $151.65 million to finance Newport Beach, California-based The Bethany Group's acquisition and repositioning of a portfolio of 12 multifamily properties.
The portfolio consisted of class-B properties located in three recovering markets: Atlanta; Greensboro/Winston-Salem, North Carolina; and Norfolk, Virginia. The Bethany Group said it plans to upgrade and reposition the assets, and take advantage of strengthening market conditions.
GE's total commitment included a $97 million A-note, a $30 million B-note and future funding of $23.6 million for capital expenditures necessary to upgrade the assets and to address deferred maintenance. GE will hold the A-note and has identified a third party to purchase the B-note, according to Linda Gorbenko, a director in GE's Irvine, California, structured finance office, which completed the deal.
"We're excited to begin this new relationship with The Bethany Group, a strong operator...