With workforce apartments desperately needed, Drever Partners closed a $15.75 million permanent 10-year loan with Franklin Templeton on The Penleigh – Branson Row apartments – formerly a hotel located at 76 Country Blvd. in Branson, Missouri.
With Drever Partners’ transformational signature enhancements and life-enriching social programs, 325 energy-efficient micro-apartments were 100% leased in the property’s first nine months. Not only is the multifamily property tracking to generate 10% cash distributions, but the adjoining The Penleigh – Live Oak apartments should enjoy the same strong cash returns for incoming contrarian investors.
The conservative, commercial mortgage-backed security closed last month and illustrates the investor demand for environmental, social and governance non-financial factors in their investment analysis. The loan was a 60% loan total value permanent first loan. This financing refutes that ESG investors will only receive low financial returns.
CoreVest Finance, a leading real estate investment lender and division of Redwood Trust, Inc., provided the original financing and construction loan for the multi-family renovation.
Drever Partners mission with all investments is to provide affordable apartments in communities with a deep need for workforce housing. They develop or redevelop broken properties that improve the neighborhoods where they are located and offer cost-effective environmental amenities and social programs that enrich the lives of their residents. They invest at a low cost for strong financial returns that are risk averse.
The expanding Branson economy and constrained housing were factors that led Drever Partners to invest in two adaptive reuse projects in the market. Rental vacancy rates in the area were approximately 1% for both studio and one-bedroom units, which is most of the supply at both of their investment properties.
The second property Drever Partners is now raising capital for is The Penleigh – Live Oak, formerly a 143-key Hall of Fame Motel converting to 138 micro apartments. Originally built in 1990, the property adjoins The Penleigh – Branson Row and is being fully transformed into a jewel in the neighborhood. Drever Partners will continue to provide cost-effective rehabilitation of ‘broken’ hotels into minimalist, affordable apartments for hard-working residents of Branson.
