Croatan Investments, a multifamily investment manager for private wealth, institutional and retail capital, has closed on a $3.2 million preferred equity investment in Sutter Ranch Apartments. The asset, a 228-unit garden-style apartment community built in 1995, is located in north Houston.
“Based on Croatan’s deep knowledge of the Houston market, our extensive value-add experience, and our partnership with an experienced local sponsor with an equity investment twice the size of Croatan’s position, we believe that our preferred equity position in this asset will provide an exceptional risk-adjusted return for our investors,” said Paul Van, CEO of Croatan. “Having closed on preferred equity investments with both Fannie Mae and Freddie Mac, Croatan is well positioned to continue taking advantage of the attractive yields available through preferred equity placements.”
The sponsor is purchasing the asset with a 10-year Freddie Mac senior loan with
