Berkadia announced today the sale of The Park at Hoover, a 1,060-unit garden-style multifamily property located on 101 acres in the heart of the City of Hoover, Birmingham’s largest suburb. This Class B property is the largest apartment property in the state. Senior Director David Wilson, Associate Director Caleb Frizzell and Director Steve Nunnelley of Berkadia’s Birmingham, Alabama office arranged the sale on behalf of the seller, with support from David Oakley of OG Capital. Senior Managing Director Charles Foschini and Managing Director Chris Apone of Berkadia’s Miami office arranged a total of $75.56 million in financing on behalf of the buyer, Miami-based Westside Capital Group. Westside’s fully integrated institutional property management arm WS Living will manage the property moving forward.  

Berkadia’s Alabama team had previously listed and sold the property in May 2015.  The owners had initiated major changes at the property in recent years, including completely updating the 6,685-square-foot clubhouse, painting the exteriors, upgrading certain amenities and renovating 10% of the unit interiors to prove the “value add” upside.

Wilson noted, “Investor interest in The Park at Hoover was extremely high, although the  scale of the asset limited the buyer pool to mostly large private equity groups and institutional owners. The massive size was particularly appealing to buyers new to Alabama as it would allow them to enter the market with scale. The property had been managed by Birmingham-based Arlington Properties, who did a great job maintaining the asset and managing the renovations.”

Berkadia originated two Freddie Mac-backed loans for sponsor Westside: a $66.56 million loan for Phase 1 and a $9 million loan for Phase 2.  Both were 10-year, floating rate loans.

Regarding financing, Foschini added, “The relationship with the agencies and our client continues to grow. Westside took a creative approach to value from inception by recognizing the differences in the asset and closing what was once run as one large property into two separate loans. Similarly, Freddie Mac, in this case, provided extremely aggressive terms and a floating-rate loan, which provides both an enviable rate and immense flexibility in terms of a future sale or refinance.”

“We see Alabama as a strategic market for Westside’s growth within the Southeastern United States that we focus on, and we want to build a long-lasting reputation of excellence within the local marketplace,” said Jakub Hejl, founder and president of Westside, a diversified real estate investment firm. “The timing of this investment demonstrates Westside’s capital strength to close large and complex transactions within tight timeframes.”

Located at 2135 Centennial Drive, the 920-unit Phase I is located in the City of Hoover and was built in 1987-88, while the newer 140-unit Phase II was built in 1996 and located in unincorporated Jefferson County. Community amenities include four swimming pools, one of the largest fitness centers in the market, four tennis courts, a sports court, dog park, playground and a clubhouse. The property is adjacent to the largest retail node in the Birmingham market, anchored by the Riverchase Galleria.  It is also extremely convenient to Interstate 459, Interstate 65 and Highway 31.

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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.

© 2021 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 Alabama, Berkadia Real Estate Advisors Inc. conducts business under AL Real Estate Broker License #C000100100-0; David Wilson is the designated broker for Alabama, his license number is #82920. Caleb Frizzell’s license number is #000114503.

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. 

Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions.

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

Berkadia announces it has arranged  $55.1 million in financing for the acquisition of Residences at Northgate, a 320-unit multifamily community in Irving, Texas and Arbor Creek, a 280-unit multifamily community in Lewisville, Texas. Senior Managing Director Mitch Sinberg of Berkadia’s Boca Raton office and Managing Director Brad Williamson of Berkadia’s Miami office secured the financing on behalf of Eagle Property Capital (“EPC”), a real estate investment firm based in Miami.

Berkadia originated and Freddie Mac purchased a $28.4 million loan for Residences at Northgate and a $26.798 million loan for Arbor Creek. Both properties were financed with 10-year, floating rate loans with 5 years IO.

“Demonstrating recent year-over-year growth in household formation and a rise in the metro area’s population, Dallas continues to maintain its status as a highly suitable investment market within the competitive Sunbelt region,” said Sinberg. “After evaluating these fundamentals and anticipating a rebounding labor market, value-add investors can expect increased demand to come up throughout the metro area and provide consistent returns to any portfolio.”

Williamson added, “Eagle Property Capital’s exemplary track record and operating capabilities have made them an exceptional partner to provide strategic financing, and has positioned them to enhance every community they invest in. Each deal underscores our proven track record with them and creates a new opportunity for improvement, ensuring a seamless entry into any market.”

“Berkadia and the Team led by Mitch Sinberg have been instrumental in Eagle Property Capital’s growth for the past seven years. They consistently provide invaluable strategic advice and impeccable execution,” said Gerardo Mahuad from EPC. “We are excited to expand our portfolio in Dallas which is one of our preferred markets due to its superb fundamentals.”

Residences at Northgate was built in 1983 and is located at 4310 W Northgate Drive. Arbor Creek was built in 1984 and is located at 396 E Southwest Pkwy. Each apartment complex boasts a number of community amenities such as washer/dryer, patios/backyard balconies, fitness centers, picnic areas with grills, a dog park, garage parking and Wi-Fi in common areas.

Both apartment communities are conveniently situated northwest of Downtown Dallas, which offers easy access to multiple employers, transit routes, entertainment venues and schools. DFW International Airport – one of the busiest airports in the world – is only 10 minutes away, with the Gaylord Texan Resort and a nearby Amazon Fulfillment Center about 20 minutes away. President George Bush turnpike is less than five minutes away, offering direct access into Downtown Dallas and the greater metro area.

Berkadia announces it has arranged a loan for the acquisition of Indigo Springs, a 240-unit value-add apartment community located in Mesa, Arizona. Senior Managing Director Mitch Sinberg and Associate Director Matthew Robbins of Berkadia’s Boca Raton office secured a $38.27 million loan on behalf the sponsor, Taurus Investment Holdings, a global real estate private equity firm.

Berkadia originated, and Freddie Mac purchased, the 7-year, floating-rate loan.

“This is a rare value-add opportunity in the southeast Valley, at the epicenter of significant new economic development and job growth in the Mesa and Gilbert areas,” said Robbins. “Furthermore, Indigo Springs is one of only 10 apartments built in this submarket over the past 20 years, and the new owner has the opportunity to complete a renovation program initiated by the previous owner.”

Built in 2000, Indigo Springs is located at 1464 South Stapley Drive and consists of 15 two-story buildings on 9.8 acres. The property features one- and two-bedroom floor plans ranging in size from 724 square feet to 1,046 square feet, with spacious floor plans, central air/heat, fully equipped kitchens, large closets, private patio or balcony, and washer/dryer included. Community amenities include two pools and a spa/hot tub, a clubhouse with business center, fitness center and package receiving area, and covered parking available.

“Phoenix continues to be a focus market for Taurus in the western United States. We remain committed to expanding our presence in the market in 2021. We believe Phoenix will continue to be an attractive destination for new residents and companies, especially those that are considering a move from high-cost coastal markets,” said Max Dorsch, Acquisitions Director of Taurus. This is Taurus’ second acquisition in the last 6 months in the Phoenix market. In August 2020, Taurus purchased Avenel on 16^th.

The property is ideally located 25 minutes from Phoenix, between the downtowns of Mesa and Gilbert in a highly visible location just north of the U.S. 60 (Superstition Freeway) and Stapley Drive on-ramp / off-ramps. The U.S. 60 provides for immediate accessibility to the Loop 101 (Price Freeway) and Loop 202 (Red Mountain Freeway), resulting in uninterrupted reach to the prominent downtown employment hubs of Mesa, Tempe, Gilbert, Chandler, and Phoenix.

Berkadia announces it has arranged debt financing and secured an equity partner for the acquisition of The Henry at Liberty Hills (formerly known as SYNC at Liberty Hills), a 228-unit luxury garden style community in Houston. Cutt Ableson and Colin Marusak of Berkadia’s Houston office arranged both debt and equity financing on behalf of the sponsor, Momentum Multifamily, a Dallas-based investment group that owns more than 11 properties encompassing over 1,600 units.

Berkadia originated a Freddie Mac 10-year, floating rate loan along with a preferred equity investment to facilitate the purchase of the asset. 

“The property’s immediate access to Highway 90 and exceptional build quality provided the buyer with a competitive asset which offers tenants efficient drive times to the greater Houston area,” said Ableson. “With nearby employers and new corporate developments in the pipeline, The Henry at Liberty Hills is positioned to benefit from improving fundamentals throughout the submarket.”

Built in 2012, The Henry at Liberty Hills is located at 15330 Liberty River Drive. One-, two- and three-bedroom units include hardwood plank flooring, sleek black appliances, a built-in workspace, entertainment bar and private patio/balcony. Community amenities feature a business center, conference room, game/media room, swimming pool, fitness center and a bark park.

Situated in East Houston, the community is located near multiple transit routes and employers. Crosby Freeway and Sam Houston Parkway are less than five minutes away, offering direct access into Downtown Houston and the metro area. Various employers including TechnipFMC, Stolt-Nielsen and IKEA are approximately 10 minutes away in nearby Generation Park, which also features numerous retail and dining options.

Berkadia announces it has arranged $33 million in refinancing for a three-property, 502-unit multifamily portfolio encompassing Uptown Apartments, Montierra Apartments and Palm Square Homes in Tampa, Florida.  Managing Director Scott Wadler of Berkadia’s Miami office and Associate Director Wesley Moczul of Berkadia’s Orlando office secured the loans on behalf of Ambrus Asset Management, a real estate investment firm based in Tampa.

“We were thrilled to have the opportunity to partner with Berkadia to secure long-term financing for our portfolio during this historically low interest rate environment,” said Eduardo Sanclemente, President of Ambrus Asset Management. “We plan to continue to grow our footprint throughout the region and remain extremely bullish on Florida multifamily market fundamentals and growth.” 

Berkadia originated the three Fannie Mae-backed loans.

“We were successful in structuring three non-crossed, 12-year, fixed rate loans offering interest only which aligned well with the Sponsor’s long-term vision for the assets,” said Wadler. “The portfolio recap will allow the Sponsor to continue their value-add strategy for these properties, including both interior and exterior improvements, to significantly drive property performance as growing renter demand continues in the North Tampa market.”

Built in 1973, Uptown Apartments is a 292-unit pet-friendly community located at 2002 Colonial Parc Drive. Studio, one-, two-, and three-bedroom units include modern white kitchens with brushed nickel accents, spacious closets and a private patio/balcony. Community amenities include three swimming pools, on-site laundry facilities, a dog park, picnic area and courtyard.

Built in 1970, Montierra Apartments is 96-unit garden-style community situated at 14401 N 22^nd Street. Offering one- and two-bedroom units, the community features a swimming pool, laundry facility, sports court and clubhouse.

Built in 1975, Palm Square Homes is a 114-unit garden-style community located at 102 E 122^nd Avenue. Studio, one- and two-bedroom units include walk-in closets, tile floors and a private patio/porch. The pet-friendly community features a swimming pool, laundry facilities and a package service.

Berkadia announces it has arranged the sale and financing of Turtle Creek, a 128-unit Class A multifamily asset in St. Louis, Mo. Managing Director Ken Aston and Senior Director Andrea Kendrick of Berkadia’s St. Louis office arranged the $24.9 million sale on behalf of the seller, Highgate Capital Group, LLC. Senior Managing Director Mitch Sinberg and Associate Director Matthew Robbins of Berkadia’s Boca Raton office secured $18.9 million in financing on behalf of the buyer, RM Communities.    

Berkadia originated and Freddie Mac purchased the 10-year, fixed rate Green Up loan with 5 years IO.

“The buyer was able to take advantage of favorable financing that complements their capital improvements program to renovate this new asset through an eco-conscious lens,” said Sinberg. “Recognizing propitious dynamics expected to take place throughout the metro area, the buyer’s Midwest investment also demonstrates a show of confidence in the multifamily market within Greater St. Louis.”

The buyer, RM Communities, is the direct-acquisition arm of RealtyMogul, one of the top online real estate investing platforms with 200,000+ investors across a $2.8 billion portfolio. "We have a firm conviction in the underlying fundamentals of this property and of the broader growth of the St. Louis metropolitan area. Our community of investors are excited to gain exposure to this market, and we plan to responsibly manage Turtle Creek for years to come," said Jilliene Helman, RM Communities' CEO.

Built in 2018, Turtle Creek is located at 201 Turtle Drive. Two-bedroom units include granite countertops, an island kitchen, stainless steel appliances, hardwood floors, walk-in closets and washer/dryer. Community amenities feature a swimming pool, clubhouse, storage space grill and dog walking park.

Located in the St. Louis suburb of Fenton, the community is located along Highway 141, bringing residents within a 30-minute drive of Downtown St. Louis.