Torchlight Investors provided $22 million in first mortgages for a pair of properties located in Bradenton, Florida and Houston, Texas through its Debt Opportunity Fund IV, the firm announced in a statement Monday.
The firm committed $10 million to Sunchase Apartments in Florida, which the complex will use to refinance and fund a renovation of its 22 multifamily buildings. The remaining $12 million Torchlight provided is being used to finance the acquisition and renovation of Idlewood Park Apartments in Houston, Texas
“Both investments represent great opportunities for Torchlight to invest in already stable, cash flowing properties while working with experienced operators to increase property appeal within the units and the common areas, allowing for substantial value appreciation in the near term,” said managing director Steve Schwartz in a statement.
Fund IV had raised at least $414.4 million as of early September, according to a US Securities and Exchange Commission filing. Torchlight expects to hold a final close at some point in the fourth quarter. The firm has set a $1 billion target for the fund, which will invest in commercial real estate securities such as CMBS, mezzanine debt, B-notes, preferred notes and financing for distressed mortgages.
In September, Torchlight announced that it had provided $36.0 million first mortgage for Monterone Canyon Creek Apartments in Austin, Texas, through the fund.