Pearlmark closes $19.9M debt investment for 144-unit Kannapolis property

Pearlmark closed a $19.9 million debt investment to finance ESJ Capital Partners' acquisition of The Bridges of Cabarrus, a 144-unit garden-style apartment community in Kannapolis, North Carolina, Connect CRE reported.

The investment was originated and structured on behalf of Pearlmark Realty Senior Mortgage Partners I, L.P. The collateral is a 2021-vintage property with seven three-story buildings in Cabarrus County, about 25 miles from Uptown Charlotte, plus a clubhouse, fitness center, pool and 294 parking spaces.

At $19.9 million across 144 units, the debt investment works out to about $138,000 a unit. The coverage describes the outlay as a debt investment and does not specify seniority or position in the capital stack; the fund name, Pearlmark Realty Senior Mortgage Partners I, L.P., says what strategy the money sits in, not the terms of this particular loan.

Connect CRE lists the submarket's demand drivers as Atrium Health Cabarrus, an Eli Lilly manufacturing facility, the Red Bull/Rauch manufacturing campus, the NC Research Campus and an Amazon fulfillment center. Those are employers and institutions, so they describe the area's employment base rather than the property's own rent roll.

ESJ Capital Partners is a vertically integrated real estate investment firm focused on middle-market investments, with more than 50 realized transactions totaling more than $280 million in equity, according to the report.