Berkadia Arranges $35M Loan for Beacon Real Estate Group’s Acquisition of Atlanta Apartments

10 August 2020

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.