Sinatra & Company Secures Financing; Grows NY Portfolio

(Newswire.net — October 5, 2016) Pasadena, California — Sinatra & Company Real Estate (SCRE), a Buffalo-based full service real estate investment firm, has secured a financing commitment from funds managed by Los Angeles-based Genesis Capital, LLC, a specialty commercial lender focused on residential real estate.

“The funds we manage are well-positioned to meet heightened demand for residential real estate financing and allow us to grow our geographic footprint to accommodate the financing needs of well capitalized investors with a proven track record in additional markets, like Buffalo-based Sinatra & Company Real Estate,” said Robert Wasmund, co-CEO and a member of the Board of Directors of Genesis.

Nick Sinatra, 35, an emerging apartment developer and manager in western New York, founded SCRE in 2009. The firm has quickly amassed a 2500-unit multifamily portfolio and has over $250 million in real estate assets under management, which includes funding from Colony Capital and the Pritzker/Vlock Family Office, among others. In 2013 Sinatra saw a pocket opportunity to go into infill development in the luxury residential space in Southern California and received institutional capital from leading global real estate and investment management firm Colony Capital. Over the last 3 years, he has repositioned over 50 homes and $100 million in assets. The flexible financing offered by Genesis-managed funds will allow SCRE to work in the luxury residential development space in a more limited capacity as Sinatra manages the firm’s aggressive expansion strategy of its value-add multifamily investments in Western New York, Chicago, and other Great Lake cities.

“When we had the opportunity to be involved with Nick and his team a few years ago as they capitalized on dislocated Southern California luxury residential markets, we jumped at it. Nick is that quintessential entrepreneur that provides vision and leadership and doesn’t hesitate to roll up his sleeves whenever he needs to,” said Kevin P. Traenkle, Executive Director and Chief Investment Officer of Colony Capital. “Through endless hard work, operational prowess and creativity, we’ve watched him build a tremendous platform. We’re extremely proud of our successful venture with Nick and his team and look forward to working with him again in the future.”

Separately, SCRE has closed on a $24.3 million deal to acquire 410 apartments in the Buffalo suburbs of Hamburg and Tonawanda. The acquisitions expand the company’s western New York holdings to over 1700 units, making it the largest apartment owner in the region. SCRE funded the transaction through the refinance of a local multifamily portfolio. The Largo Group of Companies arranged the debt financing for this transaction. The sellers were NOCO Energy Corp. and Liberatore Management Group.

The deal includes a $21 million three-property multifamily portfolio in Hamburg consisting of Lincoln Square Apartments (184 units built in 1965, 3 acres) located at 4055 Knoll Drive, Washington Square Apartments (126 units built in 1972, 5 acres) located at 5546 Scranton Road, and Colonial Court Apartments (40 units built in 1965, 3 acres) located at 5045 Berg Road. The remaining 60 units, located in Tonawanda, were acquired for $3.3 million.

Sinatra’s strategic plan for the portfolio includes implementing a strong management and leasing platform coupled with a value-add program which includes deferred maintenance and a significant investment in unit upgrades, including modernization of flooring, counters, cabinets, and appliances, along with the addition of LED lighting and upgraded fixtures.

“These properties round out our portfolio so we are better equipped to service our customers in Erie and Niagara counties with quality apartment options throughout western New York,” said Nick Sinatra, President of Sinatra & Company Real Estate. “Further, our financing commitment from Genesis-managed funds gives us a unique opportunity to pivot from condo construction, single-family new builds, and repositioning in first tier markets like Southern California to our core value-add multifamily portfolio.”