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Chetrit buys national portfolio of 10K+ rental units

The firm closed on a $280M refi and a $481M acquisition loan

Joseph Chetrit, Joseph Chetrit (top), and University Hill located in Nacogdoches, Texas (bottom)
Joseph Chetrit, Knoxville Point located in Dunlop, Illinois (top), and University Hill located in Nacogdoches, Texas (bottom)

UPDATED, June 21, 11:15 a.m.: The Chetrit Group bought a portfolio of more than 10,000 rental apartments spread across the country.

Chetrit bought the 55-property portfolio with buildings in Alabama, Arkansas, Florida, Illinois, Indiana, Louisiana, Mississippi, Ohio, New York, Tennessee and Texas, brokers who worked to finance the acquisition told The Real Deal.

Roco Real Estate, based in Bloomfield Hills, Michigan, sold the properties.

Chetrit financed the deal with a $481 million loan from JP Morgan Chase, according to Robert Verrone and Patrick Perone of Iron Hound Management Company, who arranged the debt. At a loan-to-value ratio of 84 percent, the purchase price works out to nearly $573 million.

The financing closed on Wednesday.

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In a separate transaction, Chetrit refinanced another portfolio on Tuesday with a $280 million from Arbor Realty, also arranged by Iron Hound. The portfolio consists of 56 multifamily complexes and 5,400 apartments in Florida, Indiana, Kentucky, Ohio and Pennsylvania.

Chetrit acquired the portfolio in 2015, and the new financing pays off debt from December 2017

Joseph Chetrit did not respond to a request for comment.

Post Road Management worked with Iron Hound on the larger of the two deals, and Galaxy Capital Solutions helped with diligence and closing.

Chetrit has refinanced a handful of properties in recent months. Earlier in June, the investor received a $133 million refinancing package for his development at 500 Metropolitan Avenue in Williamsburg, New York. In April, the company received $152 million from CCRE for 65 Broadway in Manhattan, also known as the American Express building. Back in December 2018, the company also received $85 million in refinancing for its mixed-use project at 545 West 37th Street in Manhattan from JPMorgan Chase and Mack Real Estate.

In South Florida, Chetrit recently closed on $55 million in financing from Rabina Properties for its long-planned mixed-use Miami River development.

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