CenterSquare’s private real estate debt team has provided a Debt-Like Preferred Equity investment to facilitate the acquisition of Fairfield Knolls at Deer Park, a Class A, townhome-style 55+ community located on Long Island, New York. This financing is subject to a Freddie Mac senior loan. Built in 2021, this 200-unit community features 2-bedroom/2-bathroom floorplans with 40 units designated as affordable housing. The Property includes state-of-the-art amenities including open floor plans, designer kitchens, stainless steel appliances, in-unit washers and dryers, a resort-style swimming pool and outdoor dining areas. Situated in Suffolk County on Long Island, residents benefit from the Property’s close proximity to major transportation routes, which provide convenient access to retail hubs, recreational spots, job centers, healthcare facilities, and airports.
The Sponsor, a leading owner and operator of multifamily real estate based locally on Long Island, intends to manage and improve this top-tier asset for value preservation and long-term tenant well-being. The purchase price included the assumption of the remaining Long Term IDA benefits for this property.
Because the investment strategies concentrate their assets in the real estate industry, an investment is closely linked to the performance of the real estate markets. Investing in real estate entails certain risks and uncertainties. Real estate is a cyclical business, highly sensitive to general and local economic developments and characterized by intense competition and periodic overbuilding. Real estate income and values may also be greatly affected by demographic trends, such as population shifts or changing tastes and values. Investments made in the real estate industry may be adversely affected by environmental conditions. Government actions, such as tax increases, zoning law changes or environmental regulations, may also have a major impact on real estate. Changing interest rates and credit quality requirements will also affect the cash flow of real estate companies and their ability to meet capital needs.
No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. A more comprehensive list of potential risk factors will be included in the applicable confidential offering memorandum and should be reviewed in full by a potential investor.
For Institutional Use Only. Not for use with the Retail Public.
