Berkadia announces it has secured a loan for the acquisition of two vintage boutique, garden-style apartment assets totaling 52 units located in the heart of East Boca Raton, Florida. Senior Managing Director Mitch Sinberg and Associate Director Matthew Robbins of Berkadia’s Boca Raton office arranged the financing on behalf of Rental Asset Management (RAM), a Fort Lauderdale-based multifamily owner-operator.
A bridge lender provided the $6.85 million fixed-rate, three-year loan. Proceeds of the loan will allow the sponsor to execute renovations and stabilize the asset, which was unoccupied at the time of closing.
“This assignment was unique in that the portfolio has been non-income producing for over year and currently sits vacant,” said Robbins. “Furthermore, many lenders have been pulling back due to the pandemic, which created an additional hurdle. Despite this, we combined our existing knowledge of the market with our deep pool of capital relationships to secure an attractive and timely financing option for our client. Both the lender and sponsor recognized the immense value-add opportunity presented by these assets, which have strong bones and a great location. The ambitious scope of renovations planned for these properties will ultimately provide a unique product to the area, catering to tenants who prefer garden-style living but want a fully modernized and upgraded unit.”
The first property in this portfolio, Villas at Camino, is located at 329 West Camino Real and 899 SW 3rd Avenue and consists of five two-story apartment buildings with 28 units. The property was constructed in 1958 and 1968. Amenities include a pool with a covered cabana and two laundry facilities. The second property, the Southwest 14th and 15th Street portfolio (located at 100 Southwest 14th Street, and 120,121, 150, 151 Southwest 15th Street), was built between 1966 and 1974 and consists of five, two-story buildings with 24 units in total. The property’s two- and three-bedroom apartments range from 1,180 to 1,250 square feet.
Both properties are located just west of Dixie and Federal Highways, in a neighborhood primarily composed of single-family homes, townhomes and multifamily buildings. They offer convenient access (less than a half mile) to Walgreens, CVS, The Fresh Market, Publix and other major retailers, and downtown Boca Raton and Mizner Park are roughly a mile away from each property.
