Prospect’s Real Estate Platform Provides $12 Million in Preferred Equity to Class A Stabilized Cash Flowing Multifamily Property in Scottsdale

/EIN News/ -- NEW YORK, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Management L.P. (“Prospect”), through its real estate platform, has closed on a preferred equity investment to recapitalize the Roadrunner on McDowell, a 356-unit, Class A stabilized cash flowing multifamily property in Scottsdale, Arizona.  Constructed in 2021, the property is owned by KB Development, a privately-owned multifamily operator headquartered in California with a substantial presence in the greater Phoenix area. The property is professionally managed under the leadership of Amber Foster, COO of Caspian Properties.

^{Prospect’s Real Estate Platform Provides $12 Million in Preferred Equity to Class A Stabilized Cash Flowing Multifamily Property in Scottsdale.}

“Prospect’s real estate platform is actively investing capital in high-quality multifamily assets in growth-oriented markets, with Scottsdale as a prime example of the type of submarket where we perceive attractive long-term fundamentals,” said Grier Eliasek, Prospect’s President and COO. “This transaction underscores our ability to provide flexible and strategic capital to experienced and well-capitalized sponsors, and our pipeline of similar potential transactions continues to grow.”

“Roadrunner on McDowell offers a resort-style residential experience in one of Phoenix’s most compelling submarkets,” said Joseph Ryu, Principal and head of Prospect’s real estate credit platform.  “With proximity to Old Town Scottsdale, Roadrunner is a highly-amenitized asset in a desirable market with strong secular demand.”

Peter Clasquin and Ian Hawk at Lument originated the Freddie Mac senior loan.

About Prospect Capital Management L.P.

Prospect, headquartered in New York City, is an SEC-registered investment adviser that, along with its predecessors and affiliates, has 37 years of experience investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of 150 professionals and offer investment solutions across credit, private equity, and real estate.

Prospect’s real estate platform invests in U.S. commercial real estate credit including senior mortgages, mezzanine loans and preferred and other equity investments.  As of December 31, 2024, Prospect and its affiliates had invested in over 32,000 multifamily units, with initial property value of $3.5 billion, and realized 36 multifamily investments.

Prospect, together with its affiliates, has $8.3 billion of regulatory assets under management as of December 31, 2024. For more information, call (212) 448-0702 or visit www.prospectcap.com.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c75059c7-fa3a-49bc-88ce-79096150dc38