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Deals & Dealmakers

Institutional Property Advisors Arranges $100 Million Facility for Thomas James Joint Venture

IPA Capital Markets, a division of Marcus & Millichap (NYSE: MMI), specializing in capital markets services for major private and institutional clients, announced today they have arranged a $100 million facility from East West Bank for a joint venture between Angelo Gordon and Thomas James Homes. The facility will refinance newly constructed, Class-A, primarily two-to-four-unit single-family rental homes and enable them to aggregate, scale, and expand the venture over time. The loan was closed by IPA Capital Market’s Jordan Ray, Steven Buchwald, and Lexington Henn.

“This facility provides a cost-effective takeout of the construction loans as homes are completed and leased to allow for portfolio aggregation, which mitigates most of the risk of a scattered home portfolio,” said Buchwald, IPA Capital Markets senior managing director.

The joint venture formed a strategy to source, build, and operate new construction residential Class-A du-, tri-, and quadruplexes on single, non-contiguous lots for long-term consumer rentals.

“It’s very hard to find land, acquire, entitle, and build Multifamily in Los Angeles,” said Ray, IPA Capital Markets senior managing director. “Building and aggregating a portfolio of high-end rentals is a great way to generate scale. The market agreed and we were able to arrange a very well-priced facility.”Angelo Gordon has acquired over $35 billion in properties globally. Thomas James Homes is one of the nation’s largest single-lot, new home replacement builders, operating in high-demand communities across Northern and Southern California, the Pacific Northwest, Colorado and Arizona. The joint venture was formed in 2020 and currently builds and operates newly constructed multi-unit rental homes in the Los Angeles area.

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