Stolar Capital, a successful multifamily operator and real estate investment fund manager, is seeking $100 million to make preferred equity and mezzanine investments in multifamily properties throughout the US.
The fund’s investments will be subordinate to a first mortgage, but senior to common equity. Even at this more protected position in the capital stack, the fund’s investments will target net returns of 10-12% (detailed financial model with supportive data and analytics, including historical information, risks and targeted returns available upon request)
There is strong demand for multifamily housing due to persistent shortages in housing units across the country, which has been exacerbated by the COVID-19 pandemic
With a ten-year development track record, Stolar has key insights in sourcing, conducting due diligence on, and structuring investment opportunities – and has the capacity to complete and manage projects
Stolar has identified middle market properties (asset value less than $75 million) as an ideal asset class due to strong deal flow, relative lack of institutional competition, and strong potential risk-adjusted yields (supporting data and analytics, including historical information, risks and targeted returns available upon request)
Stolar Fund I Investment – Durham, NC
According to the Wall Street Journal, the US has a shortage of about 5.5 million single and multifamily individual housing units. US builders added on average 1.22 million new units each year from 2001 to 2020 – down from the 1.5 million long-term average (1968-2000) – while population has steadily increased.
The pandemic has exacerbated the slow pace of new home construction due to supply chain issues, labor shortages and rising prices for materials and labor
Demand for multifamily properties is anticipated to remain strong to meet the need for shelter, in-light-of insufficient growth of single-family home supply
Senior lenders continue to be more conservative than prior to the 2008 financial crisis and the subsequent enactment of Dodd-Frank, which has left persistent financing gaps between sponsor equity and senior financing that may provide attractive risk-adjusted yields for preferred equity and/or mezzanine financing to fill the capital stack
Stolar believes there are many high-quality multifamily development opportunities as well as value-add prospects that have a need for preferred and mezzanine financing at attractive LTVs and yields
Stolar Fund I Investment – Jacksonville, FL
Focus on investment and lending opportunities that target net yields to investors of 10-12%, with 15-30% LTC collateral cushion (detailed financial model with supportive data and analytics, including historical information, risks and targeted returns available upon request)
Seek off-market opportunities sourced through Stolar’s extensive relationship network
Invest in markets with a 5+ year history of population, rent and job growth as well as affordability, STEM job presence, diversified economy, or irreplaceable institutions (state capital, universities, etc.)
Invest with experienced sponsors with successful track records
Focus on middle market (asset value < $75 million) – generally off the radar of large institutional investors with cheaper sources of capital
Stolar Fund I Investment – Tampa, FL
Stolar Fund I Investment – Tampa, FL
Oversees business development and manages acquisitions.
Previously, was with The JBG Companies (now JBG SMITH), in Washington, DC and underwrote, managed, and developed large commercial buildings.
Worked on several key deals of over $100 million, and several hundred thousand square feet of commercial space.
Acquired, rehabilitated, and leased single-family homes in the Washington Metropolitan area as an outside business activity while at JBG. BA, Columbia University.