Soaring Pine Capital, an affiliate of Simon Group Holdings, has provided a senior secured credit facility to Park Street Group Realty Services to fund the company's acquisition of residential properties in the Detroit area.
Park Street Group primarily focuses on buying and selling performing and nonperforming mortgage notes, but recently the company began purchasing residential properties to rehabilitate and then to flip to investors as rental or income properties. In total, Park Street Group has participated in more than 1,500 such transactions across the Detroit metropolitan area and in parts of Ohio and Indiana.
The credit facility will allow Park Street Group to expand its residential acquisition and rehabilitation platform within Detroit and Wayne County, Mich. Park Street Group will also use the funds to buy from the Detroit Land Bank Authority, of which they are an approved purchaser.
Soaring Pine Capital Real Estate Debt Fund II, which is supplying the credit facility to Park Street Group, was formed in 2016 to make investments in a variety of real estate assets. The credit facility was funded using equity, the company said in a news release.
"My leadership team and I have a strong commitment to supporting the revitalization of Detroit," said Sam Simon, Simon Group Holdings founder and chairman, in a news release Monday.
He also noted that it is likely his company will provide further credit "over the next several months."
