Southeast multi-housing platform recapitalized with $625M in debt financing
JLL Capital Markets served as financial advisor to multi-housing owner/operator, ECI Group, in the recapitalization of its equity shareholder interests and revisions to company governance, facilitated by a 13-property financing
NEW YORK, July 28, 2022 – JLL Capital Markets announced today that it has advised ECI Group (“ECI”), an internally managed owner/operator of over 7,500 multi-housing units in seven states throughout the Southeast, on its company recapitalization and revisions to company governance to provide liquidity for shareholders and position the company for continued growth and expansion.
Proceeds for the company recapitalization were generated through a $625 million asset-level financing package originated by Goldman Sachs Bank USA.
“This refinancing represents not only affirmation of the performance and success of the company founded more than 50 years ago but positions us extremely well for the future,” said ECI CEO, Seth R. Greenberg. “ECI Group has maintained a laser focus on being a best-in-class developer, builder, owner and operator of multifamily real estate in the Southeast and Texas. Maintaining and reinvesting in our existing assets is a high priority for us, and this capital will be deployed immediately to renovate six properties. Additionally, with our stated goal of completing four ground-up development properties each year, we will invest in other strategies that scale and support long-term growth.”
The newly financed portfolio includes assets in the Atlanta, GA; Athens, GA; Savannah, GA; Nashville, TN; Cape Coral-Fort Myers, FL; Orlando, FL; and Houston, TX MSAs. The properties offer a mix of one-, two- and three-bedroom properties. Six of the properties were constructed between 2015 and 2021, while the other seven were constructed in the 1990s and 2000s and are primed for renovations. Many of the assets were developed and constructed by ECI, and the company’s history managing these assets as a fully integrated real estate operator facilitated the debt financing process.
The JLL Capital Markets team representing ECI was led by professionals from the M&A and Corporate Advisory, Investment Advisory and Debt Placement verticals, including Senior Managing Director Ted Flagg, Senior Managing Director Roberto Casas, Managing Director Chip Sykes, Senior Managing Director Elliott Throne and Vice President Anderson Granger.
“ECI’s ability to generate liquidity through a debt recapitalization in today’s market reflects the resilient demand for high-quality real estate portfolios in favorable geographies led by proven managers,” Flagg said. “We are excited to witness ECI’s continued growth and expansion of its already large presence throughout the Southeast, following this highly strategic recapitalization.”
“This transaction attests to the full-service and collaborative capabilities of the JLL Capital Markets platform, combining the efforts of the M&A and Corporate Advisory, Debt Placement and Investment Advisory teams to execute in a challenging environment,” Sykes added.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 100,000 as of March 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
For more than 50 years, ECI Group has been one of the most highly regarded, privately owned real estate organizations in the United States. The firm is fully integrated, with development, construction, investment, and property management groups that have garnered national recognition for innovation and performance in the multifamily industry. With a portfolio of more than 7,500 units located throughout the Southeast and Texas, ECI is strategically positioned to continue to be a leader in the multifamily industry. For more information, visit www.ecigroups.com.