Senior debt is borrowing that has first claim on a company's cash and assets if the company can't pay its bills, so lenders holding senior debt are repaid before other creditors and equity holders. Think of it as being first in line at a checkout; that priority makes senior debt lower risk and typically carries lower interest, and its size and terms matter to investors because they affect the safety of creditors and the potential upside or vulnerability of shareholders.
mezzanine loanfinancial
A mezzanine loan is a type of financing that sits between a primary bank loan and equity ownership: it has a lower priority for repayment than the main loan but ranks above shareholders. Think of it as a bridge loan that fills the gap when a company needs extra cash for a buyout, expansion, or project, often carrying higher interest and sometimes a small equity stake. For investors, mezzanine debt offers higher returns but more risk than senior loans and can affect shareholder value if converted into ownership.
capital stackfinancial
The capital stack is the ordered list of sources of money a company or project uses, showing who gets paid first and who takes more risk — think of it like layers in a cake where the bottom slices are safest and the top slices are most exposed. Investors use it to judge potential return and risk: positions lower in the stack (like senior lenders) get steadier, smaller returns but higher protection, while higher positions (like common equity) can earn more if things go well but can lose value first.
mark-to-marketfinancial
"Mark-to-market" is a method of valuing assets or investments based on their current market price, rather than their original cost or value. It helps investors see the most up-to-date worth of their holdings, much like checking the latest price of a stock before deciding to buy or sell. This approach ensures that financial statements reflect real-time value, providing a clearer picture of overall financial health.
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Senior debt and mezzanine loan secured for Investor Sundance Bay across Grove East and Rowlett Station multifamily properties
HOUSTON--(BUSINESS WIRE)--
Cushman & Wakefield announced today that the firm's Texas Equity, Debt & Structured Finance (EDSF) team arranged $95.74 million in total financing for a 626-unit, two-property multifamily portfolio on behalf of borrower Sundance Bay.The financing package consists of $76.24 million in senior debt provided by Benefit Street Partners and a $19.5 million mezzanine loan through CCL Capital.
The portfolio includes Grove East, a 324-unit Class A garden-style community built in 2021 and located at 9300 N. Sam Houston Pkwy E. in Humble, Texas, and Rowlett Station, a 302-unit Class A mid-rise community also built in 2021 and located at 3601 Melcer Drive in Rowlett, Texas. Both properties were subject to Housing Finance Corporation (HFC) income restrictions, which added a layer of regulatory complexity to the transaction and required coordination across both the senior and mezzanine loan components simultaneously.
Chase Johnson, Managing Director, and Caleb Riebe, Senior Associate, led the EDSF team on the transaction.
The team received support from Cushman & Wakefield's Houston Multifamily Advisory Group, led by Jennifer Campbell and Josh Hoffman, on Grove East, and from the Dallas-Fort Worth Multifamily Advisory Group, led by Grant Raymond and Asher Hall, on Rowlett Station, and Richard Kourbage of Greystone.
“This was one of the more structurally involved deals we've worked through in recent memory,” said Johnson. “Between the HFC consent requirements on both assets, bifurcating the capital stack across a senior lender and a mezz lender simultaneously, and doing all of it in a complex credit environment, there were a lot of moving parts. Sundance Bay was a great partner throughout the process, and we're proud of the execution.”
Grove East sits adjacent to Houston's Generation Park, a 4,300-acre master-planned development that anchors one of the region's fastest-growing employment corridors. The property was 93% occupied at closing and carries meaningful mark-to-market rent upside following potential removal of HFC rent restrictions. Rowlett Station is a transit-oriented asset positioned directly adjacent to the Downtown Rowlett DART Blue Line station, offering residents direct rail connectivity to Downtown Dallas. The property was 92% occupied at closing with in-place rents trailing comparable properties in the submarket, providing a clear operational upside path as Sundance Bay executes its business plan.
Founded in 2012, Sundance Bay is a Salt Lake City-based real estate investment firm that partners with investors seeking experience, integrity, and consistent long-term growth. The firm specializes in debt, multifamily equity, and net lease investments in middle markets throughout the Mountain West and Sunbelt regions. As owner-operators, Sundance Bay draws on a vertically integrated team to identify and act on opportunities in U.S. growth markets that are often overlooked by other institutional investors, sourced through a proprietary research and risk review process. For additional information visit www.sundancebay.com.
About CCL Capital
CCL Capital is a New York-based private credit platform focused on providing structured capital solutions for multifamily and other housing-adjacent real estate assets. The firm provides mezzanine debt, preferred equity and related structured debt and equity solutions with experience closing behind Fannie Mae, Freddie Mac, HUD, banks, debt funds and other senior lenders. The firm combines in-house underwriting, structuring, closing coordination, and asset management to deliver responsive execution, flexible capital structures, and certainty of funding for sponsors and senior lenders. For additional information, visit www.cclcapital.com.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for occupiers and investors with approximately 53,000 employees in over 350 offices and nearly 60 countries. In 2025, the firm reported revenue of $10.3 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.
