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.
© 2020 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 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
Laredo, Tex. (July 21, 2020) – Berkadia announces it has arranged the sale and financing of Lago del Mar Apartments, a 260-unit garden-style apartment community located in Laredo, Texas. Senior Managing Director Ryan Epstein of Berkadia’s Houston office, along with Managing Director Mike Miller, Senior Director Will Caruth and Director Cody Courtney of Berkadia’s San Antonio office, represented the seller, a Chicago-based real estate investment management firm.
Senior Managing Director Cutt Ableson of Berkadia’s Houston office procured financing for the buyer, Haley Real Estate Group, through Fannie Mae.
“Lago del Mar is a vintage apartment complex in an excellent location that was primed for a value-add execution,” said Epstein. “Located in the economic epicenter of the Rio Grande Valley, the city of Laredo continues to benefit from economic drivers including steady growth in shale oil and gas production, infrastructure construction, and growth in logistics and warehousing, all of which brings more business to town each year.”
Added Miller, “In addition, the property benefited from limited competition, with no comparable multifamily properties currently in lease-up, under construction or proposed within five miles.”
Built in 2000/2003 and located at 7550 Country Club Drive, Lago del Mar Apartments offers a range of one-, two- , and three-bedroom floor plans averaging 776 square feet. Units feature walk-in closets, nine-foot ceilings, patios or balconies, and a full-sized washer/dryer. Community amenities include a resort-style swimming pool, clubhouse, fitness center, dog park, playground and controlled-access gate. The property is ideally located within seven miles of downtown Laredo, two miles of Texas A&M University, and just four miles from Laredo International Airport.
Winter Haven, Fla. (July 1, 2020) – Berkadia announces it has secured $7.5 million in financing for the recapitalization of Lakeshore Club, a 50-unit mid-rise apartment property located in Winter Haven, Florida. Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia’s Miami office arranged the financing on behalf of borrower Westside Capital Group, which acquired the property in 2017.
Berkadia originated and Fannie Mae purchased the 10-year, fixed-rate loan with partial interest only.
“This is the third time Berkadia has financed this project in just over three years,” said Foschini. “At each juncture, the borrower added significant value to the asset, benefitting residents and elevating the status of the property. In this most recent iteration, our team executed a permanent loan with an exceptional interest rate, locking in value and cash flow for the term of the investment.”
“We see Winter Haven as a growing market with outsized demographic growth relative to the underlying supply of new housing,” said Jakub Hejl, founder and president of Westside. “We are excited to successfully conclude the first phase of our business plan, and we look forward to starting phase two. We have proven the business model and our data suggests that Winter Haven needs additional modern apartment housing that is attractively priced but also offers the standard, comfort and amenities that residents demand and new development could offer.”
Built in 1985 and located at 1300 S Lake Howard Drive, Lakeshore Club is a five-story mid-rise apartment property featuring one-, two- and three-bedroom units averaging 1,225 square feet. Community amenities include a fitness center, a pool, extensive common areas including a clubhouse and lobby, and nearly 90 parking spots. Upon acquisition, Westside executed a full-scale property repositioning that included adding a new roof, new elevator, installing new building systems, updating common areas, renovated interior units, and adding enhanced security systems and gated parking.
Westside acquired Lakeshore Club in July 2017 for $4.3 million as an assemblage of two sites totaling seven acres. It successfully rezoned and re-parceled the site to create a new 5.7-acre site adjacent to Lakeshore Club that has been approved for a new 190-unit multifamily property at an approximate total development cost of $25 million. Both properties are ideally located within walking distance from downtown Winter Haven, and surrounded by two natural lakes and offer stunning unobstructed water views.
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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.
© 2020 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 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
Miami, Fla. (July 1, 2020) – Berkadia announces it has secured $14.36 million in financing for the recapitalization of First & Sixth Apartments, a new 100-unit high-rise apartment building located in the Miami River District of Miami, Fla. Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia’s Miami office arranged the financing on behalf of borrower, The Eastern Atlantic Companies.
Berkadia originated and Freddie Mac purchased the 10-year, fixed-rate loan with three years interest only, at a 62 percent loan to value.
“Working through the pandemic is never easy, but with cooperation of the borrower and lender we were able to get it done,” said Foschini. “This transaction is among the first in the city to be developed within their AMI overlay giving substantive bonuses to developers who build with an eye to serving the needs of the greater Miami community. Freddie Mac’s support of this loan with its understanding of the nuances and their exceptional terms will bring long-lasting benefits to the investors and tenants alike. Berkadia is pleased to partner with Freddie Mac in this transaction and pave the way for future developments that enable a more attainable rental price point to Miami’s residents.”
Located at 35 SW 6th Avenue, First & Sixth was built in 2019 and is situated in Northwest Brickell, overlooking the Miami River. It is the first apartment development to be completed under new Miami 21 zoning codes allowing for increased density, and decreased parking requirements, in exchange for incorporation of affordable housing. Eighty of the units are market rate; 20 are affordable. The 14-story property includes a mix of studio, one-, and two-bedroom apartments ranging in size from 350 square feet to over 1,100 square feet, with floor to ceiling windows and panoramic views of the city. Community amenities include a sky deck with swimming pool, a 24-hour fitness center, bicycle storage, a covered parking garage, and Wi-Fi in common areas.
First & Sixth is conveniently located two blocks from the Miami River, and less than five minutes from Route I-95, Brickell City Center, the Fifth Street Metromover Station, and several major employment and shopping centers.
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.
© 2020 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 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
