TriGate Completes Recapitalization of Condominium Developments in Silicon Valley, CA
DALLAS, TEXAS – TriGate Capital recently completed the recapitalization of two condominium developments in Silicon Valley, California. TriGate provided preferred equity to a local sponsor in order to complete the development of two high-quality, affordable condominium projects located in a strong housing market. The transaction was TriGate’s first investment in TriGate Property Partners IV, L.P., which has significant dry powder for future investment.
The opportunity presented itself due to the COVID-19 pandemic and resulting market disruption. The developments are approximately 85% to 90% complete and ran into financial duress as a result of government mandated shutdown orders and an inadequate capital structure to deal with the shutdown. TriGate worked jointly with the senior lender and sponsor to provide a creative solution by recapitalizing the projects with more equity, which allows both projects to resume construction and be completed over the next six months. TriGate believes these condominium projects are well positioned to capitalize on the demand in a strong housing market where there is a shortage of affordable housing.
Adam Aultz, Senior Vice President at TriGate, said: “TriGate was able to quickly understand a complicated situation and work with multiple parties to provide equity on a short timeframe to allow construction to resume. We are excited to partner with the developer and senior lender, both new relationships for TriGate.”
Marissa Bennett, Vice President at TriGate, added: “Given TriGate’s fully discretionary capital, we were able to meet the due diligence timeframe that the deal required and execute the transaction quickly.”
About TriGate Capital
TriGate Capital, LLC (“TriGate” or the “Company”) is a leading real estate investment manager focused on the recapitalization and repositioning of commercial real estate assets and companies. TriGate is based in Dallas, Texas and has completed investments throughout the United States. TriGate’s team has been responsible for acquiring over $11 billion of real estate assets through multiple types of transaction structures. The Company’s professionals have significant expertise in real estate operations, debt restructuring and asset and company recapitalization.
TriGate has raised three fully discretionary real estate funds, TriGate Property Partners, LP (“Fund I”), TriGate Property Partners II, LP (“Fund II”) and TriGate Property Partners III, L.P. (“Fund III”), which are the vehicles through which TriGate conducts its investment strategy. Fund I has been realized, Fund II and Fund III are fully invested. TriGate is currently raising its fourth fully discretionary real estate fund, TriGate Property Partners IV, LP (“Fund IV”), and the fund is presently in its investment period.