A Baton Rouge startup investment bank closed its first deal Wednesday afternoon, the purchase of a 228-unit apartment complex in north Dallas.
The $11 million acquisition of Preston Creek Apartments came at a 25% to 30% discount, based on traditional valuations, thanks to the troubled real estate economy, says Chas Roemer, president and CEO of Roemer, Robinson, Melville and Company. “Especially in today’s environment, we were able to get it at a very attractive price,” he says.
Roemer says the deal for the apartment complex, in the works about five months, takes up 5% to 7% of the bank’s lending capacity. He says three other deals are cooking, including a real estate venture and two prospects for “operational entities.”
One prospect is in the $10 million range; the others are in the $3 million to $5 million range. They are spread throughout Alabama, Louisiana and Texas, which Roemer says fits the bank’s strategic footprint of Gulf South investing. “This is hands-on management and acquisition,” he says. “We’re small, but we’re growing.”
Roemer’s bank filed for incorporation in October and launched with $30 million in funding for venture-capital type deals.—Todd R. Brown
