Needham Bank has provided a $41.5 million, three-part debt facility to Boston-based GromaCorp Inc., a technology startup and real estate investment firm.
Much of the financing will focus on Groma’s acquisition and rehabilitation of “small-unit count multi-family homes” in Boston, Needham Bank said in a statement.
“Small-unit count multi-family homes make up almost half of the housing stock in the Greater Boston area but are often not renovated to modern living and environmentally efficient standards,” Needham Bank said. “Groma is focused on retaining and improving this key inventory of convenient, affordable housing in Boston.”
Groma has made two acquisitions using the Needham Bank facility so far: an eight-unit property at 1536-1542 Tremont St., which has six residential and two commercial units, and a three-unit property at 19 Perrin St. Both properties are fully leased, the statement said, adding that Groma is using the debt facility to improve each building’s amenities and environmental efficiency in the coming years.
The financing will also be used for Groma’s core operating activities and as a loan facility to underwrite improvements to Groma’s Boston headquarters at 31 New Chardon St.
Founded two years ago, Groma has more than 30 employees and manages over $100 million of assets on behalf of its investors, the statement said.
“We are thrilled to be partnering with Needham Bank in this important financing facility to help scale up Groma’s efforts in the Greater Boston area,” Seth Priebatsch, GromaCorp.’s president, said in the statement. “The team at Needham Bank has been fantastic to work with, flexible to our custom needs and supportive of our long-term vision to increase both the quantity and quality of housing supply in the Greater Boston area, as well as ownership opportunities for more residents of the City.”
Needham Bank provided the financing to Groma through its structured finance team.
“We believe Groma has the ability to do great work in the region by continuing to improve both the quality and supply of much-needed housing,” Joseph P. Campanelli, Needham Bank’s chairman, president and CEO, said in the statement. “Needham Bank has a strong desire to support initiatives that have significant potential to achieve social good, and we think Seth and Groma can do just that.”