DEAL MAP

West Palm Beach, Fla. - Berkadia has arranged the $48.5 million sale and $35.8 million financing of Viera of the Palm Beaches, a 300-unit multifamily asset located in West Palm Beach. Senior Director Tal Frydman, Director Yoav Yuhjtman, and Associate Director Nicholas Perrone of Berkadia’s South Florida office represented the seller, a joint venture between investment firms Angelo Gordon and McDowell Properties, and the buyer, an affiliate of Axonic Properties, LLC. The same Berkadia investment sales team also brokered the sale of Viera of Palm Beaches previously, in 2016.

With this transaction, the Berkadia South Florida investment sales team has completed transactions of over 1,000 apartment units totaling $190 million over the last few months, and on track for another $100 million closing in the beginning of 2019. 

Senior Director Brad Williamson of Berkadia’s South Florida office arranged the financing on behalf of the buyer, a real estate owner, operator, and management firm based in New York City. Berkadia sourced very competitive terms from a top U.S. commercial bank which provided a 4-year, 70 percent LTC floating rate loan with a 160 bps spread and 3 years interest only.

“Palm Beach County distinguishes itself from the rest of South Florida with an exceptional quality of life and rapid growth opportunities throughout various sectors of the greater West Palm Beach area,” said Frydman. “With a recent influx of new construction built in the last few years, the pace of demand signals a strong multifamily market ahead thanks to a rise in job growth and median household income. Recognizing this pace, the seller began a second round of unit upgrades commanding over $120 in rent premium that will be completed by the buyer.”

“We are excited to add to our existing residential portfolio in Palm Beach County,” added Jonathan Shechtman, Managing Principle for Axonic Properties, LLC.

Built in 1986, Viera of the Palm Beaches is located at 4860 Sand Stone Lane. One- and two-bedroom units include washer/dryer, dishwasher, stainless steel appliances, granite countertops, and vinyl plank floors. Community amenities feature a newly renovated clubhouse, state of the art fitness center, swimming pool, tennis courts, barbecue area, lounge area, dog park, and trails for jogging, biking, and hiking.

Situated in Palm Beach County, the community is found near major employers and transit corridors. The county is a national leader in the aviation, aerospace, and engineering industry, supporting approximately 17,000 jobs in the area. Florida’s Turnpike is 10 minutes away and Interstate 95 is less than 15 minutes away.

 

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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.

In Florida, Berkadia Real Estate Advisors LLC conducts business under Real Estate Broker License #CQ1043330. Tal Frydman’s sales agent license is  SL672309. Nicholas Perrone’s sales agent license is SL3313004. Yoav Yuhjtman’s sales agent license is SL3309889

For state licensing details for the above entities, visit: http://www.berkadia.com/legal/licensing.aspx

Little Rock, Ark. (December 5, 2018) – Berkadia has arranged the refinancing of Argenta Flats, a 160-unit multifamily community located in the historic Argenta District in downtown North Little Rock, Arkansas. Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia’s South Florida office represented the borrower, Salter Properties, in securing the loan, with assistance from Senior Director Patrick Jordan of Berkadia’s Memphis, Tennessee office.

Benefit Street Partners of New York provided the $13 million loan, comprising a first mortgage and mezzanine debt, for a 10-year term with two years interest only. This represents an 80 percent loan-to-value or 85 percent loan-to-cost.

“Not every multifamily loan we execute fits in an agency box,” said Foschini. “While small, the loan was highly structured and consisted of a long-term permanent and an additional mezzanine component that allowed the operator to both pay off his construction loan and return equity to the investors to be used in future projects. The mezzanine loan, when blended with the underlying first, provided a very attractive rate and terms.”

 

Located at 123 W. 7th Street, Argenta Flats is composed of 160 modern one- and two-bedroom apartments in a garden-style community setting. Each unit features full-size stainless appliances, large walk-in closets, full-size washer/dryer sets, designer color schemes, and more. Community amenities include a 24-hour yoga/fitness room, wine room, book exchange room, business center, and resort-inspired pool.

 

The community is conveniently located within walking distance to the Argenta Arts District, as well as a variety of entertainment, shopping, and dining destinations, and is just minutes from Downtown Little Rock.



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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.

 

For state licensing details for the above entities, visit: http://www.berkadia.com/legal/licensing.aspx

 

Orlando, Fla. - Berkadia has arranged a $35.23 million loan for the acquisition of Canopy Apartment Villas, a multi-family residence of single-story villas and townhomes located in Orlando. Senior Managing Director Mitch Sinberg and Associate Director Matthew Robbins of Berkadia’s Boca Raton office arranged the loan on behalf of the buyer, Taurus Investment Holdings.

Fannie Mae provided the 10-year, floating-rate loan with five years interest only as part of its “Green Rewards” program.

“We are confident that the Canopy Apartment Villas will prove to be a unique asset and advantageous prospect for our client as it is set in an incredibly opportune location,” said Sinberg. “Orlando provides connectivity to thousands of jobs and in 2018, was ranked the fourth fastest growing city by Forbes.”

“We were pleased to work with our outstanding Fannie Mae team to assist Taurus in this spectacular acquisition as they continue to grow their multifamily portfolio,” added Robbins. “Amazing work by all parties involved.”

“This was a great opportunity for Taurus to purchase a unique asset in an attractive location within the city of Orlando,” said Peter Merrigan, CEO of Taurus Investment Holdings. “With Orlando’s continuous growth, we are confident in our ability to maximize the value of this investment.”

Built in 1981, the Canopy Apartment Villas are comprised of 296 units and include a variety of one-, two- and three-bedroom units averaging in 1,090 square feet. The apartment villas include 704 parking spaces, a recently renovated clubhouse, expanded fitness center, upgraded pool and new landscaping. The previous owner spent almost $3 million on capital improvements since 2015.

The Canopy Apartment Villas are conveniently positioned near Orlando’s top demand drivers and in the center of over 22 million square feet of key employment centers. They are located at 5762 Folkston Lane, Orlando, Florida 32822, just 11 minutes from the Orlando International Airport, 12 minutes from Downtown Orlando and 10 minutes from the Colonial Plaza Mall.

 

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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.

This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.

In California, Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc.  under CA Real Estate Broker Lic. #01874116, and Berkadia Real Estate Advisors Inc. under CA Real Estate Broker Lic. # 01931050. 

For state licensing details for the above entities, visit: http://www.berkadia.com/legal/licensing.aspx

About Taurus:

Established in 1976, Taurus is a Real Estate Private Equity Firm and active deal participant in thirty markets around the world.  Taurus is consistently recognized as one of the premier owner operators of both directly managed and joint venture commercial real estate. To date, Taurus has purchased and sold more than 25 million square feet (2.3 million square meters) of residential, office, industrial, retail and other commercial real estate assets throughout the world with a total acquisition value of over $3.5 billion.  www.tiholdings.com.

 

Berkadia has arranged a $46.97 million loan for the acquisition of Downtown Dadeland, a seven-acre urban retail development located across from one of the country’s top-performing malls. Located at the intersection of East Kendall, Pinecrest and South Miami, the property consists of 126,133 square feet of ground floor retail space occupied by a mix of national, regional and local tenants, along with 416 condo units and over 500 parking spaces in seven buildings. The retail portion of the property was 97 percent leased at the time of sale.

Senior Director Brad Williamson and Senior Managing Director Mitch Sinberg of Berkadia’s South Florida office arranged the loan on behalf of Miami-based Midtown Capital Partners, led by Alejandro Velez and Alexander Saieh. Midtown Capital Partners is a private real estate portfolio investment and management firm focused on commercial income-generating properties in the office, retail and multifamily market. Midtown Capital Partners has deployed over $230 million in South Florida over the past 18 months, acquiring both office and retail institutional-quality assets.

A life company originated an initial $44.57 million loan with a $2.4 million earnout. The 10-year loan was secured with five years interest only and a competitive interest rate with no prepayment after seven years. 

Brad Williamson stated, “We were able to rate-lock at application, allowing us to take a significant amount of risk off the table, giving our client certainty of execution as well as creatively structuring the loan with optimal prepayment flexibility.”

“Downtown Dadeland is the urban/suburban hub for southern Miami Dade County, with a large, affluent population located within a five-mile radius,” said Alejandro Velez. “While Miami’s retail market remains robust, with a vacancy rate of only 3.8 percent, the vacancy rate in this submarket hovers around 2.6 percent. The extraordinary location attracts local and foreign shoppers that underpin the market’s retail spending and employment growth. We believe the projected residential and hotel development in the Dadeland area and the proximity to the Baptist Hospital along with the soon to be started The Underline green corridor will bring unprecedented potential to Downtown Dadeland. Midtown envisions an even more compelling lifestyle destination that caters not only to the surrounding neighbors, but Miami in general. We are excited to be part of the future of this community.”

Built in 2008 and renovated in 2015, Downtown Dadeland is located at 7270 North Kendall Drive in the “Dadeland Golden Triangle”—a special zoning district established in 1999 to promote density at the convergence of road and transit infrastructure. Downtown Dadeland is bound by three of the region’s most heavily trafficked thoroughfares—US Highway 1, Kendall Drive and the Palmetto Expressway—and adjacent to the Dadeland South Metrorail line. This area is home to over 4,500 residential units, 2.2 million square feet of retail and over 2 million square feet of office space.

Downtown Dadeland boasts an experiential and lifestyle-oriented mix of national and local retail tenants, including neighborhood dining, boutique fitness, entertainment, furniture and e-commerce resistant soft goods. Tenants include West Elm, Chili’s Bar & Grill, Men’s Wearhouse, Club Champion, Orangetheory Fitness, Paul Mitchell and The Brass Tap, among others. It has become a culinary destination featuring acclaimed Miami chefs such as Pubbelly Sushi, Harry’s, Indian cuisine revelation Ghee, up-coming Italian eatery Erba, Barley and farm-to-table concepts such as The Brick.

Downtown Dadeland is located across the street from Dadeland Mall, which is the premier retail destination serving southern Miami-Dade County and one of top performing malls in the U.S. The mall is anchored by Nordstrom, Saks Fifth Avenue and Macy’s and tenanted by 185 specialty stores including among others, Apple, Boss, Microsoft, Porsche Design, Rolex, Tesla, Urban Outfitters and Zara. The mall draws more than 18 million shoppers annually from across the world.

Daytona Beach, Fla. – Berkadia has arranged $31.45 million in financing for two Daytona Beach communities: Lake Forest, a 240-unit multifamily asset, and Jade Park Apartments, a 144-unit multifamily asset. Senior Managing Director Mitch Sinberg, Associate Director Matthew Robbins, and Director of Operations Jared Hill of Berkadia’s South Florida office, arranged a $27.75 million senior loan and a $3.7 million mezzanine loan. The closing marks the second transaction using Freddie Mac’s Workforce Housing Mezzanine Loan pilot, which incentivizes multifamily property owners to keep rents at levels affordable to working families without any federal, state or municipal subsidy. The buyer was an affiliate of Lloyd Jones in Miami, purchasing the property for $37 million.

Freddie Mac originated 10-year, fixed-rate senior and mezzanine loans with aggressive interest rates.

"The first mortgage and mezzanine loans are accretive to the community by preserving workforce housing with rental restrictions for the term of the loans,” said Sinberg. “Simultaneously, it’s accretive to the borrower by providing a low cost of capital alternative to additional equity in exchange for the rental restrictions. This product makes a statement for Freddie Mac's role in preserving affordable workforce housing by partnering with top notch operators like Lloyd Jones."

Announced in summer 2018, the Freddie Mac Workforce Housing Mezzanine Loan pilot is an innovative new financing option – a private market execution that encourages the preservation of affordable and workforce housing. The mezzanine loan is originated simultaneously with a conventional Freddie Mac loan in a streamlined single-source process, offering favorable financing terms and additional debt capital for the borrower in exchange for the borrower voluntarily limiting annual rent growth on 80 percent of the units at the property, thereby preserving rents at more affordable levels for the life of the loan. 

“This transaction will limit rent growth on more than 300 rental units in these properties, helping to keep them affordable to low- and moderate-income families. It is an excellent example of the types of properties our Mezzanine Loan is designed to attract,” said Amanda Nunnink, senior director of production at Freddie Mac Multifamily. “We are thrilled to see borrowers taking advantage of the incentives provided by this innovative new financing and we thank the strong team at Berkadia for their partnership on this transaction.”

Built in 1987 and 1985, Lake Forest and Jade Park are located adjacent to each other and will be operated together as a 384-unit property. One-, two- and three-bedroom units offer a dishwasher, walk-in closets, vaulted ceilings, fireplace, washer/dryer and storage units.

Ocala, Fla. – Berkadia has arranged a $38.75 million loan for the acquisition of Deerwood Village, a partially renovated, 328-unit garden-style apartment community located in Ocala, Fla. Senior Managing Director Charles Foschini, Managing Director Christopher Apone and Senior Analyst Lourdes Carranza-Alvarez of Berkadia’s South Florida office arranged the loan on behalf of the buyer, West Shore LLC, a real estate investment firm based in Boston.

Freddie Mac provided the 10-year, fixed-rate loan with an extended interest only period and an 80 percent loan-to-value.

“Deerwood ranks among the nicest assets in Ocala,” said Foschini. “Freddie Mac realized that as well, and working together we were able to carve out terms for the buyer that granted many credit exceptions and allowed for a loan that gave Westshore a financing edge in both leverage and rate when competing for the asset.”

Built in 2006, Deerwood Village is composed of 40 two-story residential buildings, along with a clubhouse and maintenance building, on over 37 acres. The property offers a variety of spacious one-, two- and three-bedroom units in—average unit size is 1,015 square feet—including some with a unique “big house” design featuring private entries and attached garages.

The previous owner had spent over $5 million on capital improvements since 2015, including updating approximately half of all the unit interiors (with granite countertops, stainless steel appliances, and new wood-plank flooring) as well as renovating the clubhouse, expanding the fitness center, updating the poolside amenities, improving exterior paint and stucco, and upgrading the landscaping.

Deerwood Village is conveniently located just 10 miles from downtown Ocala and within five miles of over 70,000 jobs at employers like Lockheed Martin, Ocala Health System and Munroe Regional Medical Center. 

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