​​​​​​​​​​​​The Real Estate Debt Platform​

Arzan Wealth entered the real estate debt space in 2017, as part of its efforts to respond to changing to market conditions and to meet investors needs for a low risk profile and predictable cash flow stream. The Real Estate Debt strategy can enhance portfolio performance by adding senior and mezzanine debt investments to a real estate equity portfolio.  In December 2017, Arzan Wealth  developed and executed the first amortizing mezzanine loan in the US, in a unique certificate structure called REILS. Arzan Wealth has the exclusive rights for the REILS structure in the Middle East, while the exclusivity extends globally if the REILS is offered in a Sharia compliant ma​nner. The REILS structure is an example of how Arzan Wealth is continually trying to innovate and offer clients superior risk adjusted returns, with a prime focus on safety and regular income. In addition to the REILS, we continue to identify and advise on other senior and mezzanine opportunities in the US and believe that real estate debt should play a role in any portfolio of investments focused on an attractive income stream and enhanced risk-adjusted returns.​

List Of Transactions ​​

opportunistic

Mezzanine Opportunity – REILS Baltimore Residential Portfolio, Maryland, USA

This investment is a portfolio of single-family properties ("Portfolio"), consisting of 272 rental units in Baltimore, Maryland, USA. The properties currently have an average occupancy of 95% and are rented below market rates.

The Portfolio is spread across an interesting mix of long-term workforce and "up and coming" neighborhoods, with both Section 8  Rental Certificate program and several strong local nonprofits providing a steady stream of tenants and credit enhancement to approximately 65% of the Portfolio, offering strong downside protection.

October 2020
8.25% p.a. (Payable quarterly)​​
6 Years​​
~10% to ~12.8% (Linked to MVI)​​
Debt
 
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opportunistic

Mezzanine Opportunity – REILS Calio Portfolio – (California & Ohio) ,USA

​This investment is a portfolio of two properties located in Ohio and California in USA. The REILS would be senior to equity in a portfolio of (i) a residential wellness center in Ohio and (ii) an office building in California (the “Portfolio”). Cedar Oaks Wellness Center is expected to function as a residential wellness/rehabilitation center spread across 120 acres and is newly developed to focus on clients struggling with alcohol and drug addiction, as well as any underlying behavioral health issues. It is located in a suburb of Cincinnati, Ohio.

1300 U Street is an office building located in downtown Sacramento, the capital of California, and comprises 46,941 sq ft of single-storey space with modern infrastructure and amenities. The building is under renovation and is expected to be leased to The California Highway Patrol (CHP) for 10 years.

October 2020
9% p.a. (Payable quarterly)​​
6 Years​​
~10.4% to ~12.6% (Linked to MVI)​​
Debt
 
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opportunistic

Senior Secured Loan - Bluejack National Project, Texas, USA

​This investment is a 3-year senior secured loan to Bluejack National Project (“Bluejack”), owner of a premier luxury-lifestyle community in Houston, USA. Bluejack includes the first and only Tiger Woods designed golf course in the United States. Located an hour northwest of downtown Houston, Bluejack offers up to 550 golf memberships and over 450 luxury home sites and private estate lots. 

​The senior secured loan has been structured in a Sharia-compliant manner. There are two amortization payments prior to the end of the loan period. The loan would have absolute seniority in the capital stack at a very conservative LTV.

December 2018​
10.5% p.a. (Payable monthly)
3 Years
~ 10.5% ​
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opportunistic

Mezzanine Opportunity – REILS New Orleans Multifamily Portfolio – LA, USA

​This investment utilizes the innovative Real Estate Index Linked Securities ("REILS") instrument, which is an amortizing mezzanine loan, and has been structured in a Sharia-compliant manner.  This REILS finances the acquisition of a portfolio comprising three multifamily properties consisting of 740 apartments located in New Orleans, Louisiana, USA. The properties currently have an average occupancy of 93%, and are rented just below market rates. The transaction is structured with a net 8% coupon, payable quarterly, and with an escalating quarterly amortization schedule.  It is expected that at exit, the investors will have received approximately 87% of their investment through quarterly payments alone, and will receive an additional payment at the end of the instrument's term that is linked to the NCREIF South West Apartment MVI index.  ​

April 2018​
8.00 % p.a.​​
~ 9.4% to ~11.8% (Linked to MVI)​
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opportunistic

Mezzanine Investment - Jackson Multifamily Portfolio – MS, USA

​This investment is structured similar to an amortizing mezzanine loan, in a Sharia-compliant manner.  This funding finances the acquisition of a portfolio comprising three multifamily properties consisting of 399 apartments located in Jackson, Mississippi, USA. The properties currently have an average occupancy of over 90%. The transaction is structured with a 9% coupon, payable quarterly, and with an escalating quarterly amortization schedule.  It is expected that at exit, the investors will have received more than 95% of their investment through quarterly payments alone, and will receive an additional payment at the end of the instrument's term that is linked to the Mississippi Apartment MVI index.  

December 2017​
9.00 % p.a.​​
~ 9.10% to ~14.0%​ (Linked to MVI)​
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