DEAL MAP

Clearwater, Fla. – Berkadia announces it has arranged the $50.1 million sale and $37.22 million financing of Estates at Countryside, 320-unit multifamily asset in Clearwater, Florida. Berkadia’s Managing Director Jason Stanton out of Tampa and Senior Managing Director Cole Whitaker out of the Orlando office represented the buyer in the transaction. Senior Managing Director Mitch Sinberg and Associate Director Matt Robbins from Berkadia’s South Florida office arranged the acquisition loan on behalf of the buyer, an affiliate of Insula Companies.

Freddie Mac originated the 10-year, floating-rate loan through its “Green Up” program, with the borrower committing to implementing green improvements that will reduce water and energy consumption.

“Estates at Countryside represented an excellent opportunity for Insula to acquire a solid asset in a top Tampa Bay submarket with high barriers to entry that fits their investment strategy of enhancing the community’s overall market appeal,” said Stanton. 

“This was another seamless transaction involving Insula, Freddie Mac and the Berkadia Investment Sales team,” added Robbins. “We were able to structure a loan that allowed the borrower to sign a loan application and hold the rate for 3 months despite a large amount of market volatility in the fourth quarter of 2018 to get us to a February 2019 closing.”

Built in 1990, Estates at Countryside is located at 2652 North McMullen Booth Road. One-, two-, and three-bedroom units include vaulted ceilings, sunrooms, walk-in closets, and washer/dryer. Community features include a fitness center, spa, pool and playground. The community is approximately 30 minutes away from downtown Tampa and 25 minutes from Tampa International Airport, employing about 8,000 individuals and serving the greater Tampa area.

Clearwater, Fla. – Berkadia announces it has arranged the $50.1 million sale and $37.22 million financing of Estates at Countryside, 320-unit multifamily asset in Clearwater, Florida. Berkadia’s Managing Director Jason Stanton out of Tampa and Senior Managing Director Cole Whitaker out of the Orlando office represented the buyer in the transaction. Senior Managing Director Mitch Sinberg and Associate Director Matt Robbins from Berkadia’s South Florida office arranged the acquisition loan on behalf of the buyer, an affiliate of Insula Companies.

Freddie Mac originated the 10-year, floating-rate loan through its “Green Up” program, with the borrower committing to implementing green improvements that will reduce water and energy consumption.

“Estates at Countryside represented an excellent opportunity for Insula to acquire a solid asset in a top Tampa Bay submarket with high barriers to entry that fits their investment strategy of enhancing the community’s overall market appeal,” said Stanton.

“This was another seamless transaction involving Insula, Freddie Mac and the Berkadia Investment Sales team,” added Robbins. “We were able to structure a loan that allowed the borrower to sign a loan application and hold the rate for 3 months despite a large amount of market volatility in the fourth quarter of 2018 to get us to a February 2019 closing.”

Built in 1990, Estates at Countryside is located at 2652 North McMullen Booth Road. One-, two-, and three-bedroom units include vaulted ceilings, sunrooms, walk-in closets, and washer/dryer. Community features include a fitness center, spa, pool and playground. The community is approximately 30 minutes away from downtown Tampa and 25 minutes from Tampa International Airport, employing about 8,000 individuals and serving the greater Tampa area.

MIAMI - Berkadia’s 2019 South Florida Multifamily Market Outlook underscores developers’ confidence in the apartment market. Construction is scheduled to complete on nearly 12,000 units by year-end, up more than 18 percent from deliveries in 2018 – the most deliveries in more than two decades. Apartment leasing is expected to remain healthy too as employment growth – particularly in the professional and health sectors – is expected to outperform the national average in 2019.

“South Florida’s apartment fundamentals continue to be exceptional thanks to sustained job and population growth combined with a trend away from homeownership,” said Charles Foschini, Senior Managing Director and Berkadia Florida Co-Leader . “There are an increasing number of ’lifestyle renters’ – people who could buy but want to live in a more dynamic, amenity-rich setting. Apartment owner/operators have been very creative in catering to that segment of the market.” 

Added Mitch Sinberg, Senior Managing Director and Berkadia Florida Co-Leader, “The market for buying and selling apartment properties also remains healthy, although given where we are at the cycle, we anticipate deal volume to dip slightly in 2019. Interest rates are expected to rise, but we anticipate a tightening of spreads will compensate for any price increase.”

Berkadia’s Florida Investment Sales and Mortgage Banking teams collectively completed over $4.5 billion in multifamily and commercial property sales and financings in 2018.

Highlights from Berkadia’s 2019 Outlook report:

·         Forecasted employment growth of 2.1 percent should drive leasing activity higher than inventory growth.

·         Healthy demand should shift average apartment occupancy up 50 basis points to 95.5 percent by the fourth quarter – slightly above the five-year average.

·         Average effective rent is forecast to rise 3.7 percent to $1,606 per month.

Read the full report here.

HOUSTON – Houston’s multifamily market is set for supply and demand parity in 2019, according to Berkadia’s 2019 Houston Multifamily Market preview. Following a slowdown in absorption deriving partially from a return of homeowners to residences after Hurricane Harvey, multifamily developers will taper deliveries to bring supply and demand closer to equilibrium.

“2019 should actually be very favorable towards the landlord,” said Ryan Epstein, Senior Managing Director of Berkadia’s Houston office. “We’re not going to have a lot of supply, so it’s a good year for landlords to solidify occupancies and work on increasing rents. The trend of capital chasing assets will continue into 2019, and Houston has displayed exceptional fundamentals that will keep the multifamily market attractive for a variety of large institutional investors.”

Rising interest rates will present some headwinds in 2019, according to Senior Managing Director Tucker Knight of Berkadia’s Houston office.

“Multifamily developers and investors are certainly more conscientious about where we are in the cycle,” said Knight. “The status quo is expected to remain in 2019, with recession-proof tactics taking place in 2020. Overall, firms will remain creative in making deals work because of rising rates and the absence of price fluctuations. When it comes to development, construction financing is now more readily available than it was 20 months ago.”

Highlights from Berkadia’s 2019 Outlook report:

·         Developers are expecting to deliver 5,560 units in 2019, approximately a third fewer than in 2018 which saw 8,300 units come online.

·         Effective rents are expected to rise 4.2 percent year over year from $1,129 to $1,177 per month.

·         Consistent apartment demand will be driven by employment growth which is forecast to expand by 2.6 percent.

Baton Rouge, La. – Berkadia has arranged the $16.8 million acquisition financing of Copper Ridge Apartments and Magnolia Trace Apartments, two Baton Rouge assets with 313 units and 246 units, respectively. Senior Managing Director Mitch Sinberg, Associate Director Matthew Robbins, and Director of Operations Jared Hill of Berkadia’s South Florida office secured the loans on behalf of Timberline Capital, a real estate investment firm based in New York City.

Freddie Mac provided an $8.9 million loan for Copper Ridge Apartments and a $7.9 million loan for Magnolia Trace Apartments, each with a 10-year term and 5-years interest only.

“After experiencing a rebound in hiring since the third quarter of 2017, Baton Rouge’s multifamily market is now seeing demand exceed deliveries for the first time since year-end 2016,” said Sinberg. “It’s a market that performs well perennially in part to incoming and returning LSU students, and with a strengthening labor market across a variety of sectors, Baton Rouge is a promising area for continued investment.”

Built in 1976, Copper Ridge Apartments is situated at 2080 North Lobdell Avenue. One-, two-, and three-bedroom units include walk-in closets, window coverings, and ceiling fans. Community amenities feature a courtesy officer, laundry facilities, on-site management, and swimming pool.

Located at 11585 North Harrells Ferry Road, Magnolia Trace Apartments was built in 1972. One-, two-, and three-bedroom units include washer/dryer, dishwasher, disposal, range, ceiling fans, balcony/patio, and high speed internet access. Community amenities offer a pool, playground, laundry facilities, 24-hour availability, and on-site maintenance.

 

Katy, Texas - Berkadia announces it has secured $22.264 million in acquisition financing for Echo at Katy Ranch, a 260-unit garden-style Class A asset located in Katy. Senior Managing Director Tucker Knight and Director Nicholas Murphy of Berkadia’s Houston office arranged the loan on behalf of Olympus Property, a Fort Worth based full service multifamily investment and property management organization who owns and operates 17,000 units across 10 states.

Freddie Mac provided a 10-year, fixed-rate loan with 7 years interest only.

“Echo at Katy Ranch was another strategic acquisition for Olympus as they continue to add terrific assets to their portfolio,” said Murphy. “Freddie Mac was flawless in their execution, adding to the success for all parties involved.”  

Built in 2013, Echo at Katy Ranch is located at 24929 Katy Ranch Road. One-, two-, and three-bedroom units offer hardwood floors, double pane windows, island kitchen, pantry, double vanities, disposal, dishwasher, and granite countertops. Community amenities feature a business center, clubhouse, lounge, multipurpose room, storage space, and library.

Situated in Katy just west of Houston, Echo at Katy Ranch is found near major transit routes and recreational areas. Grand Parkway and Interstate 10 are less than 10 minutes away, offering direct access to downtown Houston and surrounding neighborhoods. The Club at Falcon Point and Mason Creek South Hike & Bike Trail are under 10 minutes away, and George Bush Park/Eldridge is less than 25 minutes away.

About Berkadia®:

Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com.

 

© 2018 Berkadia Proprietary Holding LLC. Berkadia® is a registered trademark of Berkadia Proprietary Holding LLC.

Commercial mortgage loan banking and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc.

Investment sales / real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc.

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