CanAm Capital Partners (“CACP”), a private equity investment firm affiliated with CanAm Enterprises (“CanAm”), along with the Ben Barnes Group, is acting as sponsor in the development of a 220-unit multifamily rental apartment community in the Lake Jackson, Texas (the “Project”).
“We were introduced to the Lake Jackson market by our partner, Ben Barnes, and were attracted to this investment opportunity because it’s ‘off the radar’ for most national developers but has strong employment dynamics with Dow and other major players in the petrochemical industry in the area. We saw a market with significant demand and an opportunity to build a multifamily product at a level of quality that has not been available.” said John Reid, Director at CanAm Capital Partners. “Offering equity in the Project to our investors at this stage in the development where occupancy has begun and construction is months from completion was unique. CACP oversaw and funded development through the more risky stages and our investors now stand to reap the benefits.”
CACP funded an additional $2 million of capital for the Project last week. In addition to the equity contribution, the Project was approved for and closed on a $29.3 million loan from U.S. Department of Housing and Urban Development (HUD) under the FHA 221(d)(4) multifamily lending program. HUD evaluated the financial viability of the Project based on whether it meets a minimum debt service coverage ratio at conservative rents and occupancy levels as reflected in an appraisal and market study. Construction of the Lake Jackson Project began in February 2019 and the Project was first opened for occupancy in August 2020. The Property operates under the name, “The Reserve at Lake Jackson.“
CACP’s investment strategy focuses on geographies and assets where CanAm has informational, operational and other competitive advantages. To date, CACP and its affiliates have invested in a host of developments, including two multi-family development properties in Texas, a hotel expansion in the heart of Philadelphia, a Class-A rental development in the center of Philadelphia, and repositioning a creative office space in Atlanta, with combined asset values exceeding $335 million.
With three decades of experience promoting immigration-linked investments in the United States and Canada, CanAm has a long and established track record. Basing its business on a reputation of credibility and trust, CanAm has financed over 60 projects and raised $3 billion in EB-5 investment capital. Notably, $1.75+ billion has been repaid to more than 3,500 EB-5 investors from 45 CanAm projects to date. CanAm Financial Group operates its businesses through several divisions: CanAm Enterprises operates its primary EB-5 operations; CanAm Capital Partners is tasked with sourcing and evaluating all loans (primarily mezzanine loans) and private equity investments; CanAm Capital Management is its SEC-registered investment adviser; and CanAm Investor Services is the company’s FINRA-registered broker-dealer.