Westside Capital acquired the Buena Vista apartments in 2018

Tampa, Fla. (Sept. 9, 2020) – Berkadia announced today it has arranged a $25 million  loan for the recapitalization of Buena Vista, a 240-unit garden-style apartment community in the Wellswood neighborhood of Tampa, Florida. Senior Managing Director Charles Foschini and Managing Director Christopher Apone secured the loan on behalf of Westside Capital Group, (“Westside”), a real estate investment holding firm based in Miami with multiple apartments in the Tampa area.

Fannie Mae provided the 12-year, fixed-rate loan, with partial interest only at a 70% loan to value.

“Westside Capital had done a remarkable job with this asset since Berkadia provided the original bridge loan two years ago,” said Foschini. “The asset is now fully renovated and stabilized, enabling Westside to access today’s incredibly low interest rates and attractive terms. Working together with Fannie Mae, we were able to provide a loan that was aggressive in dollars, rate and terms, taking full advantage of the value the sponsor has added during its short term of ownership.”

Added Jakub Hejl, Westside’s Founder and President, “As we predicted two years ago, the Wellswood community has continued to expand and attract new investment from both the corporate and real estate community because of its exceptional location and amenities, and we’re very pleased to have started this evolution with our investments. The Tampa economy has proven very resilient relative to the country overall with employment bouncing back in June of this year, driven in part by the region’s finance, industrial and e-commerce sectors.”

Built in 1985, Buena Vista consists of 10 buildings each containing 24 units on a 5-acre site. The property offers a mix of studio, one-bedroom and two-bedroom floor plans, with units averaging 700 square feet. Community amenities include a clubhouse, covered parking, fitness center, swimming pool and other tenant amenities. The property is conveniently located close to Al Lopez Park, St. Joseph’s Children’s Hospital and Raymond James Stadium home to the Tampa Bay Buccaneers of the National Football League (NFL).

Since acquiring the Buena Vista apartments in 2018, Westside has made a significant investment in the community and acquired another property nearby

Tampa, Fla. (September 8, 2020) – Westside Capital Group, a real estate investment holding firm based in Miami, today announced it closed on a $25 million loan to recapitalize Buena Vista, a 240-unit garden-style apartment community in the Wellswood neighborhood of Tampa, Florida. Westside acquired the apartment community in 2018 for $21.25 million, and has since made a multimillion-dollar cap-ex investment in the property. It also acquired another property in the same neighborhood – the 337-unit Watermans Crossing Apartments for $29.5 million – around this time last year.       

Westside, whose holdings include cash-flowing properties and land throughout Florida, remains optimistic on the long-term outlook for North and Central Florida’s real estate market. Earlier this summer, Westside unveiled plans for one of the largest redevelopment projects in the state - a $1 billion Opportunity Zone redevelopment of 128 acres approximately 10 minutes from downtown Orlando. The project proposes thousands of new homes, along with retail, public use space and green space, on a dormant 128-acre site in the heart of Orlando formerly associated with Lake Orlando Golf Club.

 “As we predicted two years ago, the Wellswood community has continued to expand and attract new investment from both the corporate and real estate community because of its exceptional location and amenities, and we’re very pleased to have started this evolution with our investments,” said Jakub Hejl, Westside’s Founder and President. “The Tampa economy has proven very resilient relative to the country overall with employment bouncing back in June of this year, driven in part by the region’s finance, industrial and e-commerce sectors.”

 Since Westside’s initial investment in Buena Vista two years ago, a new medical office building with 30,000 square feet of space opened next door, developers saw an opportunity to build new single-family spec homes along Buena Vista property lines as curb appeal improved, Bank of Tampa opened its new 50,000 square foot office building and St. Joseph’s Children’s Hospital continues to receive ongoing investments from its originally planned $126 million capex plan. Westside investments in the community are completely transforming this part of Tampa and were a catalyst for the entire neighborhood to experience a ripple effect of positive community investment.

Built in 1985, Buena Vista consists of 10 buildings each containing 24 units on a 5-acre site. The property offers a mix of studio, one-bedroom and two-bedroom floor plans, with units averaging 700 square feet. Community amenities include a clubhouse, covered parking, fitness center, swimming pool and other tenant amenities. The property is conveniently located close to Al Lopez Park, St. Joseph’s Children’s Hospital and Raymond James Stadium home to the Tampa Bay Buccaneers of the National Football League (NFL).

Senior Managing Director Charles Foschini of Berkadia’s Miami office arranged the $25 million, 12-year loan from Fannie Mae. It is the fourth time this year that Berkadia has secured Fannie Mae financing for Westside-owned properties, most recently arranging   a $7.5 million loan to refinance Lakeshore Club, a mid-rise multifamily property composed of 50 luxury apartments located in close proximity to downtown Winter Haven, Florida within the Tampa MSA.

Tallahassee, Fla. (September 14, 2020) – Berkadia announces it has secured a $23 million  loan to refinance a  construction loan for  CollegeTown II, a mixed-use development consisting of student housing, retail and parking located in downtown Tallahassee, Florida. Managing Director Brad Williamson of Berkadia’s Miami office arranged the loan on behalf of Seminole Boosters, the fundraising arm for Florida State University Athletics. CollegeTown II was completed in 2016 and is fully stabilized. Berkadia also sourced the original construction loan in 2015. 

Ameris bank provided the 10-year, fixed-rate refinancing, with a 3.66% interest rate. 

“The current pandemic has presented challenges for the student housing market and most lenders have been conservative due to potential campuses going virtual,” said Williamson. “Berkadia’s ability to obtain financing for this project is a testament to the strength of the overall CollegeTown project. The asset is fully stabilized and has been a staple to the Florida State University community.”

Located at 805 West Madison Street, CollegeTown II consists of five 7-story buildings with 87 units (198 beds) of student housing, 23,177 square feet of retail and a 7-story parking garage with 598 total spaces. Retail tenants in the project include Township, 51 Madison, Tin Lizzy, Barefoot Outfitters, Little Masa, and Sunstop.

The CollegeTown District is located just two blocks from the FSU campus and steps from from the  Doak S. Campbell, Donald T. Tucker Civic Center and Dick Howser Baseball Stadium. CollegeTown is the heart of game-days, dining, entertainment and year-round festivities for students, locals and alumni alike.

ATLANTA (August 10, 2020) – Berkadia announces it has secured debt for the acquisition of two apartment communities located in Decatur, Georgia. Beacon Real Estate Group, of Coral Gables, Fla., acquired the 168-unit Domain at Cedar Creek and 164-unit Gateway at Cedar Brook apartments for a combined $46.1 million.

 Managing Director Scott Wadler, Senior Managing Director Mitch Sinberg, and Senior Director Matt Nihan of Berkadia’s South Florida team arranged financing through Fannie Mae. 

Fannie Mae provided a $19.16 million loan for Domain at Cedar Creek and $16.01 million in financing for Gateway at Cedar Brook. Both were fixed-rate, 15-year loans, with nine years interest only, at approximately 75% loan to value. 

 “Beacon’s strong track record coupled with favorable debt market dynamics allowed us to secure these 15-year loans at an aggressive rate below 3 percent,” said Sinberg. “Proceeds from the loan will be used to undertake a strategic property and unit repositioning.”

  “The properties are being acquired during an extremely opportune window,” added Wadler. “Beacon was able to purchase the two property portfolio at a cap rate slightly above market as a result of COVID disruption and simultaneously capitalize on a treasury yields that compressed over the last 90 days to ‘floor’ pricing.”

 Beacon Managing Partner Richard Kulick commented, “We are thrilled to add these highly desirable communities to our expanding portfolio of multifamily assets in core markets.”

 Beacon Managing Partner Carlos E. Imery said, “We are extremely well-capitalized and are stepping on the gas during a time when many investors are on the sidelines.”

 Beacon owns more than 6,000 multifamily units in the Southeast U.S., with a strong focus on secondary markets. The company’s portfolio also includes nearly 1 million square feet of office and retail properties in the region.

 Built in 1970 and 1972, respectively, Domain at Cedar Creek and Gateway at Cedar Brook are considered sister communities. They are located within one mile from each other. The previous owner made substantial recent investments to upgrade roofs, siding, HVAC systems and clubhouses at the communities. Both properties are 99% occupied. Beacon plans to add value through extensive interior renovations.

 Located at 3073 Cedar Creek Parkway, Domain at Cedar Creek offers one-, two- and three-bedroom apartments ranging in size from 750 square feet to 1,350 square feet. Apartments feature spacious open layouts, walk-in closets, washer/dryer, and patios or balconies. Amenities in the gated, pet-friendly community include two pools with a sundeck, a lighted tennis court, fitness center, playground, package service, laundry facility and sand volleyball court.

 Located at 3117 Cedar Brook Drive, Gateway at Cedar Brook also offers one-, two- and three-bedroom apartments ranging in size from 750 square feet to 1,350 square feet. Community amenities include a 24-hour fitness center, two pools, a playground, and it is located on a MARTA Busline.

 Both communities are conveniently located near Highway 78 and I-285 and just a few minutes from both downtown Decatur and downtown Atlanta. Emory University, Dekalb Medical Center, North DeKalb Mall, Emory Hospital and a variety of employment centers and shopping/retail destinations are all located within a few miles. 

The Carter @ 4250, located outside of Atlanta, consists of 300 apartments

Norcross, GA (August 10, 2020) – Berkadia announces it has secured debt for the refinance of The Carter @ 4250, a 300-unit apartment community located in Norcross, Georgia, on behalf of the sponsor, Miami-based One Real Estate Investment (OREI). In addition, Berkadia also sourced a capital group to recapitalize one of the sponsor’s equity partners.  

 Senior Managing Director Mitch Sinberg of Berkadia’s Boca Raton office, along with Managing Director Brad Williamson of Berkadia’s Miami office, arranged a $29.135 million loan through Freddie Mac. Berkadia’s Joint Venture Equity and Structured Capital Group in New York, led by Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick, lined up an institutional-quality equity partner, Electra Capital, to complete the equity stack for OREI.

 Freddie Mac provided a 10-year, sub 3% floating-rate loan with five years interest only and a 75% percent loan to value. The proceeds were used to refinance the existing bridge loan and recapitalize the deal.

 This is the second time this year that Berkadia has arranged debt and sourced equity for an OREI property. In May, Berkadia also arranged senior debt and a $4.09 million preferred equity investment through Electra Capital for OREI’s acquisition of Element at University Park, a 192-unit apartment community in College Station, Texas.

 “This loan replaced a bridge loan, and through Freddie Mac we were able to significantly lower OREI’s cost of capital, increase proceeds by over a half million dollars post application, and ultimately help them execute their business plan,” said Williamson. “We also closed in an expedited fashion.”

  “In both transactions, Electra Capital was able to move quickly with favorable terms for the sponsor,” said Kirkpatrick.

Jeronimo Hirschfeld, President and CEO of OREI, added, “With this refinance and three acquisitions, OREI is pleased to announce that we have closed on our fourth transaction during the coronavirus pandemic. With excellent partners we continue to grow our portfolio of 200+ unit value-add multifamily assets throughout Texas and the Southeast in this challenging environment.”

 Built in 1985, The Carter @ 4250 is situated at 4250 Jimmy Carter Boulevard and offers one- and two-bedroom apartments ranging in size from 707 square feet to 1,052 square feet. It is located less than ten minutes away from a variety of restaurants, apartment communities, churches, salons, and stores. Community amenities feature a swimming pool, on-site management, a playground, free weights, a BBQ/picnic area, on-site maintenance, a clubhouse, a laundry center, a fitness center, a club discount, a business center, a sports court, and a dog park.

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HINESVILLE, GA (August 3, 2020) – Berkadia announces it has procured financing for the recapitalization of Liberty Club Apartments, a new 240-unit, garden-style apartment community located in Hinesville, Georgia. Managing Director Michael Weinberg and Associate Directors Alec Fox and Wesley Moczul of Berkadia’s Orlando office secured the $24.01 million loan on behalf of the sponsor, Hillpointe, a fully integrated real estate development and investment management firm focused on workforce housing  opportunities in the southeastern United States.

Fannie Mae provided the twelve-year, fixed-rate loan with five-years interest only and a 70 percent loan to value. Proceeds will be used to retire the existing construction loan and enhance Hillpointe’s ability to finance future developments.

“Even through the COVID-19 pandemic, the property experienced an unprecedented lease-up phase due to overwhelming market acceptance and pent-up demand for new product in the market,” said Weinberg. “Given the tremendous demand, Hillpointe was able to outperform initial proforma rents and lease the project to full occupancy within a matter of months. We are pleased to be partnered with a great developer like Hillpointe and look forward to more successful deals in the future.”

Located at 915 East General Stewart Way, Liberty Club Apartments was built in 2019, and consists of 9 residential buildings, 11 garage buildings, and a clubhouse. Two-bedroom/two-bathroom floor plans average 1,153 square feet. Community amenities include a resort- style pool, clubhouse and fitness center, dog park, and fishing ponds.   

Liberty Club Apartments enjoys a desirable location less than 3 miles from Fort Stewart, the largest Army installation east of the Mississippi River, and less than 20 minutes away from I-95. The property is located immediately adjacent to a Walmart Neighborhood Market and is in close proximity to Liberty Regional Medical Center (2.3 miles) and Savannah Technical College (6.8 miles).
 

About Hillpointe:

Hillpointe is a fully integrated real estate development and investment management firm based in Winter Park, FL. Hillpointe focuses on workforce housing opportunities primarily in secondary markets throughout the Southeastern United States. The firm employs a vertically integrated strategy to fully control the development, general contracting, and materials sourcing of their projects which allows them to deliver new product at a significant discount to market replacement costs. Over the past two decades, Hillpointe’s principals have developed in excess of 4,000 housing units. https://www.hillpointe.com/

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.

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