Berkadia announces it has secured debt financing for the acquisition of two multifamily communities in Charlotte, N.C. totaling 550 units. One Real Estate Investment (OREI) of Miami acquired the 310-unit Kelston Apartments and 240-unit Avalon Apartments for $68.7 million using a combination of $51.4 million in Fannie Mae and Voya debt across the two assets.

Introduced by Berkadia’s Joint Venture Equity & Structured Capital Group during an earlier transaction, investment fund manager MLG Capital was re-engaged with OREI as a repeat investor providing $13.1 million from its Fund IV in JV equity for the Avalon Apartments.

Senior Managing Director Mitch Sinberg and Managing Director Brad Williamson of Berkadia’s South Florida Mortgage Banking team arranged the debt financing. Berkadia’s Joint Venture Equity & Structured Capital Group, led by Noam Franklin, Chinmay Bhatt and Cody Kirkpatrick, delivered MLG Capital as the JV equity partner.

Voya originated the 3-year, floating rate loan with 3 years IO for Kelston Apartments. Fannie Mae originated the 10-year, fixed rate loan for Avalon Apartments.

“The proximity of each property to neighboring assets that have demonstrated value-add potential show the proven upside the Kelston and Avalon communities bring for both partners to capitalize on,” said Williamson. “East Charlotte’s easy access to important areas of employment such as Uptown, University City and South Park, coupled with investments in its public infrastructure, position this submarket for continued demand and rent growth,” added Kirkpatrick.

“With Avalon and Kelston serving as OREI’s second and third acquisitions in the Charlotte market over the past 15 months, our team remains bullish on the market’s demand drivers, growing employment and population base, and the continued rent growth across the East Charlotte submarket, in particular,” states Jeronimo Hirschfeld, CEO of One Real Estate Investment.

Built in 1986, the 310-unit Kelston Apartments is located at 1207 Kelston Place. One-, two- and three-bedroom units include walk-in closets and private patios and balconies. OREI intends to re-develop a brand new clubhouse at the asset, inclusive of a state of the art fitness center, leasing office, cyber café, and swimming pool.

Built in 1999, the 240-unit Avalon Apartments is located at 6000 Regal Estate Lane. One-, two- and three-bedroom units feature black appliances, a breakfast bar, walk-in closets, vinyl wood flooring, built-in desks and private patios and balconies. Community amenities include a renovated clubhouse, coffee & tea bar, media/entertainment lounge, pool table, fitness center and dog spa.