Commercial mortgage-backed security (CMBS) issuance secured for six Sentral properties with flexible length of stay

LOS ANGELES, Dec. 17, 2024 /PRNewswire/ -- Last month's $525 million refinancing for six Sentral properties across five states is a positive development for the operator, owners of the buildings it operates and the multifamily industry at large. Sentral, the leading full-building residential hospitality operator, is unique in its ability to deliver luxury services and integrate short- and mid-length stays into designer-furnished units. This "flexible living" approach–along with high-quality, hospitality-inspired amenities–consistently increases revenues and yields for Sentral-managed multifamily buildings.

The commercial mortgage-backed security (CMBS) issuance was securitized by Deutsche Bank and Goldman Sachs for ICONIQ Capital, which owns the six Sentral-managed properties. The transaction terms included 5 years of fixed-rate financing at pricing and valuations consistent with traditional, Class A multifamily properties, and wide latitude for flexible management and various lengths of stay. The issuance is a testament to Sentral's track record of generating enhanced revenue and consumer ratings across a national footprint.

Sentral chief operating officer Roman Speron explained: "Furnished short- and mid-term rentals are relatively new to the Class A multifamily sector, and often considered a hospitality investment by the debt markets, but consumer demand has been strong for many years. Sentral provides a way to capture this demand and optimize results for apartment owners–while enhancing satisfaction for long-term residents, too."

The buildings refinanced through this transaction are Sentral Union Station in Denver, Sentral Michigan Avenue in Chicago, Sentral SoBro in Nashville, Sentral Wynwood in Miami, Sentral East Austin 1614 and Sentral East Austin 1630. Together, they comprise nearly 1,700 units in urban markets.

Sentral–which has more than tripled in size since 2021–now has more than $4 billion in assets under management. The company recently announced management contracts including Nashville Yards in Tennessee, Otonomus Hotel in Las Vegas and Ten310 in Los Angeles.

About Sentral
Sentral is the leading Class-A multifamily property management company that drives significantly higher NOI through differentiated operating capabilities. The company provides full-cycle property and asset management services on over $4 billion in multifamily assets for a growing list of institutional owners nationwide. Sentral delivers flexible living services, authentic local experiences, premium amenities, community connection for residents and guests, and a tech-enabled platform that enhances operational efficiency. Sentral is backed by world-class firms in technology, hospitality, and real estate, including ICONIQ Capital, Highgate Hotels, and Ascendant Capital Partners. The company is headquartered in San Francisco and Denver. Sentral.com @SentralLife.

Contact:
Brian Moriarty
6468206292
[email protected]

SOURCE Sentral