OZ Pitch Day - March 23rd
Griffin Capital Announces Special QOF Distribution
Griffin Capital has completed a successful recapitalization of its Laurel Apartments in East Austin, and announced a special distribution to investors in its Qualified Opportunity Fund. Laurel Apartments is a 300-unit complex, which was developed along with Greystar Real Estate Partners,
It is common for Qualified Opportunity Funds to refinance construction loans with lower cost debt once construction has been completed and the underlying property has been leased out. Such recapitalization often lowers the effective interest rate of the debt while also providing additional cash that can be distributed to investors.
The special distribution represents approximately 50% of the equity allocated to the project.
“We view the fact that the community was completed on time and under budget given the cyclical headwinds of supply chain issues and materials cost volatility is a reflection of diligent construction and asset management and illustrative of the strength and scale a partner like Greystar brings to our investors,” said Eric Kaplan, President of Griffin Capital Company.