CLAWSON,
Mich., May 7, 2024 /PRNewswire/ -- The GSH
Group, one of the nation's fastest-growing multifamily real estate
investment companies, announces the closing of loan modifications
on several properties with Arbor Realty, marking a significant
milestone in the company's growth and success.
This successful closing is the result of a long and intricate
negotiation process involving $365
million of senior loans issued in 2021 and 2022, just prior
to the rapid rise in interest rates that caused upheaval in the
real estate market and the broader economy. While many operators
across the country are facing foreclosure and elimination of
investor equity, GSH has been able to preserve the integrity of the
deals and make a monumental and positive step towards stabilizing
assets. The loan modification includes GSH and its investors
contributing additional capital to each deal and a combination of
the purchase of new rate caps, mortgage interest accrual, and
additional mezzanine financing to cover interest rate induced cash
shortfalls through the new loan period.
With the modified loan terms and additional equity from GSH and
investors, GSH now has a three-year window to execute its business
plan, boost Net Operating Income, and transition to a fixed-rate
mortgage. This achievement reflects Arbor's confidence in GSH's
capabilities, and GSH is now poised to pursue its adjusted roadmap,
protect equity, and aim for a successful exit.
Gideon Pfeffer, GSH Managing
Partner and CEO, expressed his excitement about the successful loan
modifications, stating, "The successful negotiation and closing of
these loan modifications exemplify GSH's dedication to innovation,
adaptability, and resilience. This milestone represents a
tremendous achievement for GSH and brings us one step closer to
realizing our business plan. The support and confidence shown by
Arbor Realty and our investors have been instrumental in overcoming
the market challenges we faced. We now have a clear path to execute
our strategy and achieve a successful exit."
Given the recent market shakeups, GSH is identifying
significant buying potential in the multifamily real estate market,
specifically from operators struggling to carry out their business
plans on floating interest rate bridge loans. GSH, with its robust
platform and proven track record, is approaching a pivotal window
to acquire and stabilize these struggling assets, from which its
investors will greatly benefit. GSH will soon launch an equity fund
to capitalize on these opportunities. Check out GSH's latest
successful exit here.
About GSH:
Founded in 2017, The GSH Group specializes in owning,
managing, and improving multifamily communities in desirable
locations with strong potential. The GSH partners have purchased
approximately 9,472 apartment units in the country's top housing
markets. Its current portfolio consists of around 6,387 units
across 6 states, including 10 multifamily communities acquired in
2021. The firm currently holds approximately $1 billion in assets under ownership.
The GSH Group, an Inc. 5000 company, has been recognized
for outstanding accomplishments including the prestigious M&A
Award 2024 for its creative financing deployed to close the
region's top multifamily deal of 2023. To learn more, visit
gshrealestate.com.
MEDIA CONTACT:
Mataan Lis
Director of Investor Relations
248.787.4745
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SOURCE The GSH Group