Berkadia Arranges Programmatic Capital Partner for Capstone Communities’ Robust Pipeline of Build-for-Rent Projects

23 September 2021

Berkadia announces it has secured a programmatic capital partner to help Capstone Communities execute its plan to continue developing a pipeline of build-for-rent (BFR) communities across the country.


Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick of Berkadia JV Equity & Structured Capital set up the programmatic partner – a publicly traded REIT – as the capital partner for Capstone’s robust pipeline of BFR communities. Berkadia sourced a total of $37 million of equity for the first two projects in Port St. Lucie and Myrtle Beach, which both broke ground in late August and look to deliver their clubhouse and first units next fall.


“The BFR space is flush with institutional capital right now, but identifying the right programmatic partner for Capstone Communities was our goal as we wanted a group that would have the appetite and ability to be a reliable partner now and down the road,” said Kirkpatrick. “Both The Cottages at Port St. Lucie and The Cottages at Myrtle Beach will be top quality products in their respective markets, and Berkadia was proud to represent them on the search for a programmatic partner with these projects as the first two deals in this new marriage between the capital and developer.”


Developed with a “new urbanism” style featuring sidewalks, pocket parks and open green spaces, The Cottages will feature a mix of single-story and two-story cottages, each with its own private, fenced yard, as well as a centralized clubhouse and resort-style pool.


“Since 2007, our team has developed cottages in more than 20 student housing communities across the country and is currently under construction on four additional multifamily cottage-style communities across the southeast,” said John Acken, executive vice president of Capstone Communities. “As we continue expanding the cottages within the multifamily sector, our goal is to meet the needs of each market and build a true sense of community that is unlike a traditional apartment setting. Berkadia was instrumental in helping us secure the right partner for our cottage community program.”


Build-for-rent communities are one of the fastest growing trends in the multifamily real estate segment. Capstone and other BFR developers have demonstrated that BFR concepts generate approximately 20 to 30 percent rental rate premiums compared to traditional multifamily apartments because of their design and amenity offerings. Most BFR communities consist of single-story cottage-style homes and private yards with access to upscale apartment-like amenities.


Capstone’s in-house construction entity, CBI Construction Services, is serving as the general contractor for both projects, and Nequette Architecture & Design, in Birmingham, is the lead architect. Capstone’s in-house management company, Capstone Properties, will lease and manage each community. For more information, please visit or