Newport Beach, CA – Schelin Uldricks & Co. announces that it has arranged a $63,000,000 loan to refinance SOMO Village, a 593,645 square foot mixed-use real estate project in Rohnert Park, California. The new financing enabled the property owners to recapitalize and access some of the equity in the project to fund the construction of residential development on unencumbered land adjacent to the site.
“We marketed this financing opportunity across a wide spectrum of lenders including regional banks, CMBS lenders, life companies, and money center banks. We went through a three-round bidding process before selecting a national lender,” commented Ethan Schelin, Managing Partner at Schelin Uldricks & Co. “The capital markets have been unsettled with the recent rise in interest rates and with the aftermath of recent bank failures. However, we were successfully able to close the transaction and now our client has additional liquidity to complete other important projects that will increase the supply of housing in an under-supplied market. We view this transaction as a win-win-win situation for the borrower, lender, and community.”
“Some real estate sponsors are sensing that the real estate market is heading toward price correction, so they are interested in bolstering liquidity ahead of any disruptions,” remarked Derek Uldricks, Managing Partner at Schelin Uldricks & Co. “Many investors look back and wish they had more cash to invest in real estate when it was an out of favor asset.” Mr. Uldricks also explained that, “Sponsors are tapping under-utilized equity on stabilized assets through cash-out refinance while the capital markets are still willing to do so. The largest asset managers are sitting on a lot of cash, we think small and mid-size sponsors should replicate the same strategy where appropriate.”
SOMO Village is a critical element of the local community and serves as a hub of both national and local business in the area as well as a model for economic and environmental sustainability. The project generates 4 megawatts of energy across the vast array of solar panels affixed to the roof of the project thus drastically reducing reliance on the California energy grid.
About Schelin Uldricks & Co.
www.schelinuldricks.com
Schelin Uldricks & Co. offers investment banking services with a focus on providing capital solutions to real estate companies and other mid-sized businesses.
Headquartered in Newport Beach, California, Schelin Uldricks & Co. embodies a progressive entrepreneurial culture focused on integrity, transparency, execution, and ingenuity. The founding partners bring extensive capital markets experience in investment banking, private equity, and real estate finance. The company offers a broad array of services, including debt and equity placement, M&A consulting, GP advisory, divestitures, and financial restructuring.