MIAMI, FL – Tzadik Properties, an industry-leading multi-family property management company and one of the largest owners and operators in South Dakota, recently announced the completion of more than $ 115 million in refinancing transactions for portions of its Sioux Falls, SD and Rapid City areas known SD portfolios. These transactions are part of the company's strategy to continue expanding and finding new growth opportunities.
Led by Lucas Grassano, Vice President of Capital Markets, who handled the liquidation, and Michael Davalos, Executive Vice President and Head of Acquisitions, who oversaw lender procurement, the refinancing is part of the original business plan for the transition from short-term to long-term loans -terme, cheaper debt.
The portfolios Sioux Falls A and Sioux Falls 1, consisting of 707 units in 18 properties and 439 units in four properties, were refinanced with Greystone. Under the new terms, Tzadik switched from 6% interest rate bridging loans to 3.17% interest rate long-term loans and provided $ 4.5 million of the proceeds for CapEx improvements and additional funds to return partner capital and repurchase shares.
Two further portfolios in Sioux Falls, including 459 units in four properties, and two properties in Rapid City with a total of 261 units, were refinanced with Merchants Bank and switched from 6% bridge to 3.5% long-term loans. While these three transactions were cash neutral, two of the loans allowed CapEx setbacks totaling $ 500,000.
"Our team prides itself on our proven approach to doing business and creating value while protecting the bottom line and being financially responsible," said Adam Marcus Hendry, chief executive officer of Tzadik Properties, LLC. "These refinance transactions are part of our strategies to keep our spending efficient, which in turn drives our constant growth."
Tzadik entered the South Dakota market in 2018 with 721 units and quickly expanded to currently own and operate 2,206 units. During the pandemic, Tzadik continued to actively invest and find new growth opportunities. In 2020, Tzadik found new market opportunities by acquiring farms and ranches across the country, including 22,000 acres of income-generating ranch land in South Dakota. The team is currently working on additional refinancing transactions for its Texas and Nebraska portfolios.