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.
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.
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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 16th.
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.
