SFO Capital Partners debuts its private credit investment program with the financing of a multifamily housing community in Florida
London, December 15, 2023 – SFO Capital Partners has partnered with Pearlmark to close on a USD27.0mn mezzanine debt investment for the development of Encore at Tradition, a 415-unit Class A multifamily housing community located in Port St. Lucie, Florida.
This transaction marks SFO Capital Partners’ debut in private credit and represents its 22nd investment in the USA, further expanding its robust footprint in multifamily housing, a sector which continues to prove its resilience and stands as the centerpiece of SFO Capital Partners’ US investment strategy. To date, SFO Capital Partners has invested in over USD1.4bn worth of US housing assets, representing more than 7,200 units located in the nation’s fastest growing metro areas.
Encore at Tradition features the highest level of amenities in the market with 21 acres of open space and offering the most in-demand villa units. It is strategically located in Tradition, a master-planned community developed in 2003 with mixed-use, office, retail, medical centers, multifamily and single-family homes. Construction on the Property is more than 60% complete, with full delivery expected in the second half of 2024.
Commenting on this transaction, Mohamad Abouchalbak, CEO of SFO Capital Partners said: “We are thrilled to have completed this first credit deal as it complements our US multifamily housing strategy. This transaction allows us to leverage on our deep-rooted sector experience while benefiting from pricing dislocation that private credit investment offers, highlighting the shift in the market over the past year. Our team has showcased remarkable agility in adapting to market changes, ensuring the delivery of an exceptional initial private credit investment.”
About SFO Capital Partners: SFO Capital Partners is a London-based global real estate investor and investment manager, committed to achieving superior risk-adjusted returns and focused on establishing and maintaining long-term relationships with its global clients and partners. SFO Capital Partners applies its global mindset, in-depth sector experience and local knowledge to unlock international real estate investment projects in Europe and the USA across a select range of investment strategies including income-generating, value-add and development schemes. As of December 2023, SFO Capital Partners has acquired a diversified portfolio comprising more than $2.4 billion in assets located primarily in the USA and Europe, including 7,400 apartments and more than 10.8 million square feet of commercial real estate under management.