Soaring Pine Capital Real Estate and Debt Fund, an affiliate of Birmingham-based private equity firm Soaring Pine Capital, has provided a senior secured credit facility to Bloomfield Hills-based Park Street Group Realty Services.
Since 2008, Park Street Group, which buys and sells performing and underperforming homes through affiliated companies, has participated in over 1,500 residential property transactions in the metro Detroit area, as well as part of Ohio and Indiana.
Officials with Park Street say the transaction will enable the group to expand its residential acquisition and rehabilitation platform within Detroit and the rest of Wayne County, as well as the Detroit Land Bank Authority, of which they are an approved purchaser.
The Soaring Pine Capital Real Estate Debt Fund II, which was formed in 2016 to make opportunistic investments in a variety of real estate assets, funded the transaction with equity, and officials with Soaring Pine Capital say it’s likely the firm will also provide additional credit over the next several months to Park Street Group.
“Our group has had tremendous success identifying properties that can successfully be renovated, and either sold or leased at a substantial return to our investors,” says Dean J. Groulx, founder and owner of Park Street Group. “We’re proud that we’ve made owning or renting a house more affordable as well as helping the overall market due to the beautification of these neighborhoods.”
Recently, Park Street Group has been acquiring and renovating homes and then reselling them as rental or income properties to domestic and foreign investors.
Founded in 2014, Soaring Pine Capital — a Simon Group Holdings company along with Atlas Oil Co., Fast Track Ventures, and Vixta Solutions — invests in lower middle market opportunities through private fund investment strategies in private equity and real estate. The private funds focus on areas such as energy, logistics, undervalued real estate, and note purchases.