DEAL MAP

Fort Myers, Fla. - Berkadia has arranged the sale of Cobblestone on the Lake, a 290-unit condominium community consisting of 186 rental units in Fort Myers, Florida. ESG Kullen, of New York, acquired the 186-units for $21.25 million, or $114,247 per unit. The deal gives the new owner complete control over the condominium association. 

Senior Director Tal Frydman, Director Yoav Yuhjtman and Associate Director Nicholas Perrone of Berkadia’s South Florida office, along with Senior Director Jason Stanton of Berkadia’s Tampa office, arranged the sale on behalf of ESG Kullen and the seller, Gestion Sebring LLC, a real estate investment firm based in Toronto, Canada. Having arranged 11 fractured condo deals consisting of almost 1,500 units and over $100 million in sales, the investment sales team begins 2019 with strong momentum carrying over from the previous year.

“The buyer obtained a well-located, desirable property with considerable upside potential in one of Florida’s fastest-growing metros,” said Frydman. “Our analysis shows that current in-place rents are well below comparable properties in the area.”

Built in 2009, Cobblestone on the Lake is located at 4301 Executive Circle and consists of 13 garden-style buildings with one-, two- and three-bedroom models ranging from 764 square feet apartments to four-story townhomes spanning 1,835 square feet with ground-level private garages. Of the 186 units acquired, 144 are “rent-ready” and 42 are in shell condition. The shell condition units will be renovated and brought back online, along with upgrades to the remaining units. Current in-place rents average $1,182 or $0.63 per square foot. Community amenities include a clubhouse, fitness center, game room and meeting room, heated pool and spa, and a jogging/walking path.


Cobblestone on the Lake is conveniently located near major employers and transit routes. Southwest Florida International Airport, which creates over 45,000 jobs, is 20 minutes away, as well as Florida Gulf Coast University. Interstate 75 is 10 minutes away, providing access to the rest of southwest Florida and South Florida, and US-41 is less than five minutes away, providing an alternative route throughout the region and to South Florida.

 

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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.

 

© 2019 Berkadia Proprietary Holding LLC. Berkadia® is a registered trademark of Berkadia Proprietary Holding LLC.

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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.

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.

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.

 

 Lake Worth, Fla. – Berkadia has arranged the $25.64 million sale and finance of Oakwood Apartments, a rare 160-unit apartment community featuring all four-bedroom townhome-style units located in Lake Worth. Senior Director Tal Frydman, Director Yoav Yuhjtman, and Associate Director Nicholas Perrone of Berkadia’s South Florida office represented the sellers, Coast Capital Partners and Naya USA. Senior Director Brad Williamson and Director of Operations Jared Hill of Berkadia arranged the $19.231 million acquisition loan on behalf of the borrower, One Real Estate Investment.

Freddie Mac originated a seven-year, fixed-rate Green Up loan with a 75 percent LTV ratio.

“The property was last traded in 2014 for $12.9 million and was sold for a considerable gain, thanks to property improvements and renovations carried out by the previous owner and South Florida’s competitive multifamily market,” said Yuhjtman.

 “Palm Beach County is increasingly becoming one of South Florida’s most attractive investment locations,” said Williamson. “The area has diversified its economic base, strengthening its financial, technology, manufacturing, agricultural and tourism sectors to complete a transformational process throughout the county. Ranked among the top 100 ‘Best Places to Live,’ Palm Beach County is poised for further growth while highlighting accelerated employment, local amenities, and universities.”

“Oakwood presents a unique unit mix and compelling value-add opportunity which our firm specializes in,” added Jeronimo Hirschfeld, CEO of One Real Estate Investment. “Our planned enhancements will further improve the entire community’s amenities and interiors.”

Built in 1993, Oakwood Apartments is located at 2425 Second Avenue North, and comprises160 two-story attached townhome units each with four bedrooms and 2.5 bathrooms and 1,252 square feet of space. Community amenities include swimming pool, clubhouse, business center, gym, internet café, and onsite management. Rents range from $1,500 to 1,700 for renovated units.

The community is conveniently located close to Interstate 95 and is less than 25 minutes away from Downtown West Palm Beach and Boca Raton. 

 

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