Berkadia announces it has arranged the sale of Village at Lake Worth and Village at Lake Osborne, two apartment communities with a total of 336 units in Palm Beach County, Fla.

Senior Managing Directors Roberto Pesant and Jaret Turkell of Berkadia Miami,  Associate Omar Morales and Senior Financial Analyst Jose Mota of Berkadia Miami marketed the property on behalf of the seller, AHS Residential, a Miami-based vertically integrated real estate company that specializes in developing, building, and managing high-quality multifamily communities across the United States. Social Housing Inc. acquired the properties for a combined $81.5 million.

“Outsized demand combined with the County’s under-supply drives the submarket’s strong apartment fundamentals,” said Pesant.  “The Lake Worth submarket remained at 95% occupancy or above in 2020 and is poised for additional rent growth.”

Built in 2017 and located at 2430 Lake Worth Road, Village at Lake Osborne offers 118 units of one- and two-bedroom apartments averaging 700 square feet to 855 square feet. Individual units offer 10-foot ceilings, open kitchen floorplans, modern cabinetry with soft closing doors and drawers, granite countertops in kitchen and bathrooms, stainless-steel appliances, a washer and dryer in every apartment, vinyl plank flooring, impact resistant windows and a private balcony or patio. The gated community amenities feature a resort-style swimming pool, 24-hour fitness center, a multipurpose clubhouse, a children play area and complimentary Wi-Fi in the common areas.

Built in 2015 and located at 2220 Lake Worth Road, Village at Lake Worth offers 216 units of one-, two- and three-bedroom apartments averaging 700 square feet to 1,200 square feet. Individual units include 10-foot ceilings, open kitchen floorplans, modern cabinetry with soft closing doors and drawers, granite countertops in kitchen and bathrooms, stainless-steel appliances, a washer and dryer in every apartment, vinyl plank flooring, impact resistant windows and a private balcony or patio. Community amenities include a resort-style swimming pool, a BBQ and picnic area, a 24-hour fitness center, a multipurpose clubhouse with a kitchen and billiards table, a children play area and complimentary Wi-Fi in common areas.

Located in Palm Beach County, both the Village at Lake Osborne and the Village at Lake Worth are centrally located with fast and easy access to both north and southbound I-95 and are close to the Palm Beach State College, Downtown Lake Worth, Lake Worth Beach Park, John Prince Park, the JFK Medical Center, Palm Beach State and the Palm Beach County Park Airport.

Berkadia announces it has arranged the $68.5 million sale and $36.25 million financing of Veere Apartments, a 250-unit class AA garden style community located in Orlando. Managing Directors Brett Moss and Matthew Wilcox, alongside Associate Director Tyler Swidler of Berkadia Orlando, secured the sale on behalf of Epoch Residential. Managing Director Michael Weinberg and Associate Directors Wesley Moczul and Alec Fox of Berkadia Orlando arranged the financing on behalf of the buyer, Blackfish Investments.

Nationwide Life Insurance Company originated the 10-year, fixed rate loan with full term IO.

“Despite the pandemic-related headwinds and Orlando’s perceived exposure to tourism and hospitality, the Veere process was extremely competitive and garnered significant interest from a diverse range of investors looking to capitalize on Orlando’s robust growth trajectory and strengthening market fundamentals,” said Moss. “The combination of Veere’s remarkable asset quality and highly sought-after Tourist Corridor location uniquely position the property to provide significant long-term value,” added Wilcox.

“The borrower had significant 1031 equity to put to work, so we structured a low leverage loan at a coupon of around 3% with full term I/O,” added Weinberg. “It was a smooth execution by Nationwide, one of Berkadia’s top correspondent life companies, and the borrower side, as well.”

“As a buyer, we were very impressed and pleased with Berkadia’s communication and responsiveness. The sale/purchase process and the acquisition of debt was seamless, and we couldn’t have been more pleased,” said Dave Freeman, founder of Blackfish Investments.

Built in 2020 by Winter Park-based developer Epoch Residential, Veere is located at 10000 Palma Linda Way. One-, two- and three-bedroom units include stainless steel appliances, contemporary cabinetry, granite countertops, wood-plank style flooring, walk-in closets, USB charging ports and electronic keyless entry. Community amenities feature a two-story clubhouse with complimentary Wi-Fi, a resort-style pool, Luxer One package system, a two-story fitness center, resident library with work spaces and a gated dog park with indoor pet spa.

Situated in Orlando’s renowned Tourist Corridor submarket, the community is about 15 minutes away from world-famous attractions including Walt Disney World, Universal Orlando, and SeaWorld. Additional major employers in the area include Lockheed Martin, Marriott Vacations Worldwide, Wyndham Destinations, Orlando Health, and AdventHealth, among others.

Veere will also benefit from the upcoming $1B mixed-use O-Town West project by Unicorp National Developments. Featuring office, retail, medical, hotel and residential uses, the development is located immediately north of Veere and introduces a host of day-to-day conveniences and amenities within walking distance of the community.

Houston’s multifamily market is set to rebound following a first quarter that showed a slowdown in deliveries and consistent demand for rentals. According to Berkadia’s latest report on occupancy rent trends, after a five-year high of 21,270 units came online in 2020, just 1,255 were completed in Q1 2021, with approximately 4,000 units being leased. Over three quarters of those deliveries were in the Central Houston region as developers look to tap into the lack of available housing in the urban core.

Two such properties near Downtown Houston include the newly-built 15th Street Flats, built in 2020 and located at 1414 N Shepherd Dr and Heights Waterworks, built in 2019 and situated at 515 W 20th St. Following an accompanying trend of renters consistently choosing urban areas over the suburbs, both properties have been placed on the market by Senior Managing Directors Chris Curry and Todd Marix alongside Managing Directors Chris Young and Joey Rippel of Berkadia Houston.

“Houston’s role as a leader in office occupancy, its growing economy, and better yields and exit caps compared to Dallas and Austin provide the fundamentals necessary to fortify its rebounding multifamily market,” said Curry. “The city’s affordability relative to the rest of the nation, and the consistent return of renters choosing urban over suburban rentals, make this a viable market for investors as new residents continue to make the move in and around the metro area.”

Additional findings include:
•    Average apartment occupancy increased 40 basis points quarter over quarter to 88.9%
•    Monthly effective rent advanced on average over the same period from 1.3% to $1,055
•    The Houston MSA saw a 1.3% population increase from 7.2 million to 7.3 million from Q1 2020 to Q1 2021

Berkadia announces it has arranged the $57.75 million sale and $41.75 million financing of Verso Luxury Apartments, a 250-unit community located southwest of Orlando in Davenport, Florida. Managing Directors Matt Wilcox and Brett Moss, along with Associate Tyler Swidler of Berkadia’s Orlando office, arranged the sale on behalf of a JV between The Garrett Companies and Phoenix Capital Holdings. Managing Director Jason Brown and Senior Real Estate Analyst Austin Katai, of Berkadia’s Indianapolis office secured the loan on behalf of a JV between TTI Capital of Reston, Virginia and Viking Companies of Gainesville, Florida.

Berkadia sourced the loan from Asia Capital Real Estate (“ACRE”), who provided a two-year, floating rate non-recourse loan that allowed the borrower to acquire the property at stabilization with more aggressive underwriting and leverage than the agencies could currently offer.

The transaction, which is TTI Capital’s first acquisition in Florida, continues to demonstrate the diverse nature of capital seeking residential investment opportunities throughout the Orlando MSA, given the area’s strengthening market fundamentals which translate into elevated demand for housing.

“Davenport’s burgeoning local logistics presence and emerging medical critical mass have proven to drive resiliency throughout Davenport / ChampionsGate, especially relative to some of Central Florida’s harder hit industries since the onset of the COVID-19 pandemic. Additionally, Verso’s highly differentiated ‘big house’ product drove one of the most impressive lease-up stories of any community in Central Florida since the onset of the pandemic,” said Moss.

“With the rapid rise in construction costs, mainly driven by lumber, coupled with rising insurance costs, numerous planned developments in the area have been precluded from being successfully capitalized. Sellers of existing multi-housing communities are enjoying an onslaught of buyer demand from all corners of the globe, which we do not see subsiding any time soon. As a result, we expect pricing to continue to elevate and cap rates to continue to compress,” added Wilcox.

“The ACRE bridge loan was underwritten and accepted while the property was still completing its initial lease up and stabilization, allowing our client to acquire this luxury property within a tight sale timeframe and with subordinate capital in the capital stack,” said Brown.

Built in 2020, Verso Luxury Apartments is located at 6100 Echelon Way. One-, two- and three-bedroom units include quartz countertops, stainless steel appliances, tile backsplash, wood-style plank flooring, breakfast nooks, NEST thermostats and washer/dryers. Community amenities feature an expansive clubhouse, resort-style swimming pool with private cabanas, fitness center, outdoor kitchen with grill area, parcel lockers, spa and a pet park.

Adjacent to the 96,750-square-foot Ovation Town Center, the community is found near several important day-to-day retail options as well as Fortune 500 employers. Distribution centers from UPS, Amazon, Walmart and CVS are only about 15 minutes away from the property, supplying thousands of steady jobs in the area that buttress Polk County’s employment composition.

Berkadia announces it has arranged the sale and financing of a three-property, 452-unit portfolio of affordable multifamily properties located in the suburbs of Richmond and Norfolk, Virginia. The three properties - Oaks of Dunlop Farms in Colonial Heights (144 units), Independence Square (152 units) and Crescent Place (156 units), both in Portsmouth – traded for a combined $48 million.

Senior Managing Director Drew White of Berkadia’s Chevy Chase, MD office and Director Carter Wood of Berkadia’s Newport News, VA office represented the seller, The Franklin Johnston Group. Senior Managing Director Mitch Sinberg and Associate Director Matthew Robbins of Berkadia’s Boca Raton office arranged a $39.105 million loan on behalf of the buyer, a joint venture between Blackfin Real Estate Partners, LLC and GMF Capital.  Berkadia originated and Freddie Mac will purchase the 10-year, Targeted Affordable Housing (TAH) floating rate loan.

“We had investor interest from all over the country for these three properties, as it's a rare opportunity to see a portfolio averaging 98%+ occupancy and 4%+ rent growth,” said White. “This was a testament both to the management team, as well the market. Great execution all around.”

“Leveraging Freddie Mac’s affordable housing product to carry out a unique investment thesis among three properties, the buyer’s portfolio will benefit from tailwinds in each market that have resulted in stabilized properties,” added Sinberg.

Built in 1990, The Oaks of Dunlop Farms is located at 101 Old Oak Ln. One-, two- and three-bedroom units include high speed internet access, washer/dryer and a fireplace. The pet-friendly community features a clubhouse, swimming pool and playground.

Built in 1986, Independence Square is located at 5120 George Washington Hwy. One-, two- and three-bedroom units include walk-in closets, washer/dryer and a private patio/balcony. The pet-friendly community features a swimming pool and playground.

Built in 2008, Crescent Place is located at 2804 Turnpike Rd. One-, two- and three-bedroom units include walk-in closets, office space and washer/dryer. The pet-friendly community features a clubhouse, swimming pool and a fitness center.

Berkadia announces it has arranged the sale and financing for a three-property, 252-unit multifamily portfolio in the Florida Panhandle. Vantage Point Acquisitions acquired the three apartment communities including the 176-unit Crosswinds, 40-unit Crosslake Cove and 36-unit Ponderosa Place, located in Fort Walton Beach, only 30 minutes from iconic Destin beaches and approximately 45 miles east of Pensacola.

Senior Director David Etchison of Berkadia’s Florida Panhandle office and Senior Managing Director Cole Whitaker of the Orlando office arranged the $49.8 million sale on behalf of the seller, Fisher Development LLC. Senior Managing Director Mitch Sinberg and Associate Director Matthew Robbins of Berkadia’s Boca Raton office arranged the financing on behalf of Vantage Point Acquisitions.

“This legacy portfolio represented a rare opportunity to acquire newer construction multifamily assets in one of the fastest-growing markets along the Emerald Coast,” said Etchison. “Fisher Development’s custom homebuilding background is evident in the construction quality and special unit features like unique top floor lofts. The transaction process was a true collaboration between Fisher Development LLC and Vantage Point Acquisitions that resulted in a win-win for all parties.”

According to CoStar & RCA, this sale sets the new high-watermark in Fort Walton Beach at nearly $198,000 per unit for a conventional multifamily property.

Fannie Mae originated the 12-year loan with 7 years IO at an aggressive interest rate.

“Fort Walton’s rate of growth and labor resiliency have made it a competitive market with fundamentals that create favorable opportunities for investment,” said Sinberg. “Anchored by one of the largest military bases in the U.S. and industries like construction and manufacturing, the city is part of what’s considered the Florida Panhandle’s jobs center, bringing new residents and corporate investment that further support its multifamily market.”

Built from 2013 to 2019, Crosswinds is a 176-unit community that includes modern floor plans, fully equipped kitchens, walk-in closets, vaulted ceilings with extra loft space, and private screened patios. Community amenities include a custom-designed swimming pool, in-home washer and dryer connections, large fitness area, a spacious clubhouse, and several private garages.

Built in 2001, Crosslake Cove Apartments is a pet-friendly, 40-unit community with an incredible location, private pool, in-home washer and dryer connections, loft units, and private screened patios.

Built in 1999, Ponderosa Place Apartments is a pet-friendly, 36-unit community that includes modern floor plans, in-home washer and dryer connections, and private garage parking for each unit.
Berkadia's North/Central Florida multifamily investment sales team has closed over $2.1 billion in sales volume through over 19,000 units since 2017.