Southeast Multi-Dwelling Platform Recapitalized with $625M Debt Financing

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NEW YORK, July 28, 2022 – JLL Capital Markets today announced that it has advised ECI Group (“ECI”), an internally managed owner/operator of more than 7,500 multi-residential units in seven Southeastern states, on the recapitalization of its company and the corporate governance reviews to provide shareholder liquidity and position the business for continued growth and expansion.

Proceeds from the company’s recapitalization were generated through a $625 million asset-level financing package initiated by Goldman Sachs Bank USA.

“This refinancing not only represents an 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 focus on being the best developer, builder, owner and operator of multi-family real estate in the Southeast and Texas. Maintaining and reinvesting in our existing assets is a priority for us, and this capital will be deployed immediately to renovate six properties. Additionally, with our stated goal of completing four development properties from scratch each year, we will invest in other strategies that evolve and support long-term growth.

The newly funded portfolio includes assets in Atlanta, GA; Athens, Georgia; Savannah, Georgia; Nashville, TN; Cape Coral-Fort Myers, Florida; Orlando, Florida; and Houston, TX MSA. The properties offer a mix of one, two and three bedroom properties. Six of the properties were built between 2015 and 2021, while the other seven were built in the 1990s and 2000s and are ready for renovation. Many assets have been developed and built by ECI, and the company’s history of managing these assets as a fully integrated real estate operator has 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, General Manager Chip Sykes, Senior General Manager Elliott Throne and Vice President Anderson Granger.

“ECI’s ability to generate cash through debt recapitalization in today’s market reflects resilient demand for high-quality real estate portfolios in favorable geographies led by proven managers,” Flagg said. “We are delighted to see ECI’s continued growth and expansion of its already significant presence throughout the Southeast, following this highly strategic recapitalization.”

“This transaction demonstrates 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 global, full-service provider of capital solutions for property investors and occupiers. The firm’s in-depth knowledge of the local market and global investors provides best-in-class solutions to its clients, whether it is investment and sales advisory, debt advisory, equity advisory or recapitalization . The firm has more than 3,000 capital markets specialists worldwide with offices in nearly 50 countries.

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