The California investment firm that last month scooped up a chunk or Related Companies’ rent stabilized apartment portfolio is bulking up its purse.
Pembrook Capital Management has announced the closing of a preferred equity investment of up to $50,000,000 to Prana Investments.
The money will allow Prana to continue to acquire additional workforce housing in both Los Angeles and New York City.
Earlier this month, Prana bought the 252-unit apartment complex River Court and Gerard Court at 1065-1075 Gerard Avenue in the Concourse section of the Bronx. Related Companies sold the low-income housing development for $36 million.
The Prana fund Pembrook invested in currently owns 39 residential rental properties totaling 1,241 units (1,159 residential) of which 17 properties (435 units) are located in Los Angeles and 22 properties (806 units) are located in New York City.
Prana is an investor in rent-regulated multifamily properties in urban neighborhoods.
“We’re pleased to structure an investment that will improve the sponsor’s portfolio as well as provide funding to acquire additional affordable housing units on both coasts,” said Stuart
J. Boesky, CEO of Pembrook.
“Los Angeles and New York City each have a critical shortage of affordable multifamily housing and we expect continued overwhelming demand for quality, reasonably priced multifamily product such as this in both of these areas.”
Boesky noted that roughly 85 percent of all new multifamily properties are luxury Class A product, making this project something of a rarity.
Pembrook is a real estate investment manager that provides financing throughout the capital structure. The firm has originated or participated in investments totaling over $1.4 billion since it began investing in 2007.