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$38.5M capitalization secured for luxury Cleveland multi-housing development

23 May 2023

MIAMI, May 17, 2023 – JLL Capital Markets announced today that it has arranged the recapitalization of Landmark South, a 631-unit, mid-rise multi-housing community in Doral, Florida.

JLL worked on behalf of the borrower, JSB Capital Group, to secure the five-year, $154.1 million senior loan through Freddie Mac Multifamily. The loan will be serviced by JLL Real Estate Capital, LLC., a Freddie Mac Optigo℠ lender.

JLL simultaneously arranged a $65.8 million preferred equity investment from Pensam.

Built across two phases in 2017 and 2021, Landmark South features units with terraces, courtyard views, stainless steel appliances, in-unit washers and dryers, European-style cabinetry, walk-in closets and an average size of 1,017 square feet. Community amenities include, grilling stations in outdoor courtyards, fitness centers and more.

The property is located at 6055 NW 105th Ct.

The JLL Capital Markets Advisory team was led by Senior Director Jesse Wright, Managing Director Brian Gaswirth, Managing Director Maurice Habif, Senior Director Simon Banke and Senior Director Ted Taylor.

According to Wright and Gaswirth, “The borrower was able to take advantage of a highly competitive preferred equity market alongside strong senior financing from Freddie Mac to significantly lower its cost of capital on this trophy asset. Pensam and Freddie Mac both delivered in the face of significant macro headwinds.”

Hen Shoval, Director of Investments at Pensam, stated, “We have been incredibly active in providing structured finance solutions to complete the capital stack on deals such as Landmark South. The current interest rate environment is leading to compressed senior loan proceeds, which in turn is creating funding gaps that can be addressed with Pensam’s preferred equity or mezzanine debt. Over the past few years, we have closed well over one hundred transactions of this kind and are therefore experienced to navigate through complex transactions in compressed timeframes.”

Pensam is a Miami-based multifamily real estate investment platform that has invested in $7.5 billion across its platform and in across 50,000 apartment units in 28 states. The firm focuses on the multifamily sector by making direct equity investments and by delivering structured finance capital solutions, such as bridge loans, preferred equity, and mezzanine debt, to other sponsors.

“Working closely with Pensam and JLL provided us unique visibility into the professionalism and smarts of these two organizations,” said Jared Frydman, JSB Senior Managing Director and Head of its Miami office. “This was not a transaction short on complexity or volatility.  We raise our hands in tribute to Pensam and JLL for closing this deal so quickly and forthrightly.  Landmark South is a jewel in the constellation of Doral, and JSB looks forward to helping it shine even more brightly in the years ahead.”

JLL delivers multi-housing investors a full range of solutions through one diverse, integrated platform. The division employs approximately 400 professionals who provide comprehensive investment sales and disposition services with access to thousands of domestic and foreign investors. JLL is also one of the nation’s largest affordable and conventional multi-housing and seniors housing lenders with comprehensive loan underwriting, asset management and loan servicing capabilities. Agency/GSE lending and loan servicing are performed by JLL Real Estate Capital, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated. Loans made or arranged in California are pursuant to a California Financing Law license.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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