Daytona Beach, Fla. – Berkadia has arranged $31.45 million in financing for two Daytona Beach communities: Lake Forest, a 240-unit multifamily asset, and Jade Park Apartments, a 144-unit multifamily asset. Senior Managing Director Mitch Sinberg, Associate Director Matthew Robbins, and Director of Operations Jared Hill of Berkadia’s South Florida office, arranged a $27.75 million senior loan and a $3.7 million mezzanine loan. The closing marks the second transaction using Freddie Mac’s Workforce Housing Mezzanine Loan pilot, which incentivizes multifamily property owners to keep rents at levels affordable to working families without any federal, state or municipal subsidy. The buyer was an affiliate of Lloyd Jones in Miami, purchasing the property for $37 million.

Freddie Mac originated 10-year, fixed-rate senior and mezzanine loans with aggressive interest rates.

"The first mortgage and mezzanine loans are accretive to the community by preserving workforce housing with rental restrictions for the term of the loans,” said Sinberg. “Simultaneously, it’s accretive to the borrower by providing a low cost of capital alternative to additional equity in exchange for the rental restrictions. This product makes a statement for Freddie Mac's role in preserving affordable workforce housing by partnering with top notch operators like Lloyd Jones."

Announced in summer 2018, the Freddie Mac Workforce Housing Mezzanine Loan pilot is an innovative new financing option – a private market execution that encourages the preservation of affordable and workforce housing. The mezzanine loan is originated simultaneously with a conventional Freddie Mac loan in a streamlined single-source process, offering favorable financing terms and additional debt capital for the borrower in exchange for the borrower voluntarily limiting annual rent growth on 80 percent of the units at the property, thereby preserving rents at more affordable levels for the life of the loan. 

“This transaction will limit rent growth on more than 300 rental units in these properties, helping to keep them affordable to low- and moderate-income families. It is an excellent example of the types of properties our Mezzanine Loan is designed to attract,” said Amanda Nunnink, senior director of production at Freddie Mac Multifamily. “We are thrilled to see borrowers taking advantage of the incentives provided by this innovative new financing and we thank the strong team at Berkadia for their partnership on this transaction.”

Built in 1987 and 1985, Lake Forest and Jade Park are located adjacent to each other and will be operated together as a 384-unit property. One-, two- and three-bedroom units offer a dishwasher, walk-in closets, vaulted ceilings, fireplace, washer/dryer and storage units.

Ocala, Fla. – Berkadia has arranged a $38.75 million loan for the acquisition of Deerwood Village, a partially renovated, 328-unit garden-style apartment community located in Ocala, Fla. Senior Managing Director Charles Foschini, Managing Director Christopher Apone and Senior Analyst Lourdes Carranza-Alvarez of Berkadia’s South Florida office arranged the loan on behalf of the buyer, West Shore LLC, a real estate investment firm based in Boston.

Freddie Mac provided the 10-year, fixed-rate loan with an extended interest only period and an 80 percent loan-to-value.

“Deerwood ranks among the nicest assets in Ocala,” said Foschini. “Freddie Mac realized that as well, and working together we were able to carve out terms for the buyer that granted many credit exceptions and allowed for a loan that gave Westshore a financing edge in both leverage and rate when competing for the asset.”

Built in 2006, Deerwood Village is composed of 40 two-story residential buildings, along with a clubhouse and maintenance building, on over 37 acres. The property offers a variety of spacious one-, two- and three-bedroom units in—average unit size is 1,015 square feet—including some with a unique “big house” design featuring private entries and attached garages.

The previous owner had spent over $5 million on capital improvements since 2015, including updating approximately half of all the unit interiors (with granite countertops, stainless steel appliances, and new wood-plank flooring) as well as renovating the clubhouse, expanding the fitness center, updating the poolside amenities, improving exterior paint and stucco, and upgrading the landscaping.

Deerwood Village is conveniently located just 10 miles from downtown Ocala and within five miles of over 70,000 jobs at employers like Lockheed Martin, Ocala Health System and Munroe Regional Medical Center. 

Berkadia has arranged $21.75 million in acquisition financing for Anatole on Briarwood, a 250-unit garden style community located in Midland. Senior Managing Director Tucker Knight and Director Nicholas Murphy of Berkadia’s Houston office arranged the loan on behalf of Olympus Property, a full-service multifamily investment and property management organization headquartered in Fort Worth.

Freddie Mac originated the 10-year, fixed-rate loan with five years interest only.

“As energy prices have displayed a stable trading range between $40 and $50 a barrel, the Midland economy has responded and the multifamily sector is reporting strong fundamentals,” said Murphy. “As a result of reemerging demand, in concert with seemingly manageable supply volumes, both occupancy and rent growth show positive momentum. In addition, due to the sponsor’s success on two previous transactions in this market, Freddie was able to provide a long term fixed-rate solution that was accretive to the borrower.”

Built in 2014, the property’s one-, two-, and three-bedroom units offer walk-in closets, washer/dryer, dishwasher, granite countertops, range, oven and garbage disposal. Community amenities include a business center, clubhouse, coffee bar, sundeck, TV lounge, fitness center and swimming pool.

Located at 5200 Briarwood Avenue, Anatole on Briarwood is situated in the Greathouse area of Midland. The community is located near important transit hubs and amenities. Bush Tennis Center is less than five minutes away, and Midland Park Mall is less than 10 minutes away with retail stores that include Coach, Oakley, Ulta, and Dillard’s. Midland Airpark is less than 15 minutes away, and Loop 250 is five minutes away, offering access into and out of Midland and the Midland International Air & Space Port.

Midland, Texas – Berkadia has arranged $21.75 million in acquisition financing for Anatole on Briarwood, a 250-unit garden style community located in Midland. Senior Managing Director Tucker Knight and Director Nicholas Murphy of Berkadia’s Houston office arranged the loan on behalf of Olympus Property, a full-service multifamily investment and property management organization headquartered in Fort Worth.

Freddie Mac originated the 10-year, fixed-rate loan with five years interest only.

“As energy prices have displayed a stable trading range between $40 and $50 a barrel, the Midland economy has responded and the multifamily sector is reporting strong fundamentals,” said Murphy. “As a result of reemerging demand, in concert with seemingly manageable supply volumes, both occupancy and rent growth show positive momentum. In addition, due to the sponsor’s success on two previous transactions in this market, Freddie was able to provide a long term fixed-rate solution that was accretive to the borrower.”

Built in 2014, the property’s one-, two-, and three-bedroom units offer walk-in closets, washer/dryer, dishwasher, granite countertops, range, oven and garbage disposal. Community amenities include a business center, clubhouse, coffee bar, sundeck, TV lounge, fitness center and swimming pool.

Located at 5200 Briarwood Avenue, Anatole on Briarwood is situated in the Greathouse area of Midland. The community is located near important transit hubs and amenities. Bush Tennis Center is less than five minutes away, and Midland Park Mall is less than 10 minutes away with retail stores that include Coach, Oakley, Ulta, and Dillard’s. Midland Airpark is less than 15 minutes away, and Loop 250 is five minutes away, offering access into and out of Midland and the Midland International Air & Space Port.

MIAMI – Berkadia has arranged a $45.75 million bridge loan for the River Oaks Marina & Tower, a 199-unit 20-story apartment tower in Miami. Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia’s South Florida office arranged the loan on behalf of the buyer, a Miami-based real estate investment firm.

A correspondent life insurance company of Berkadia’s provided a three-year, floating rate bridge loan at a 75 percent loan-to-cost ratio. The loan features two one-year extension options and interest only during the initial three-year term.

“River Oaks has the bones of an exceptional asset that is about to undergo a dramatic transformation,” said Foschini. “The loan provides the new owner the ability to add modern touches to the building and improve the amenity base to attract quality renters to a value-oriented property with condo-quality views and finishes. Located directly on the Miami River, River Oaks will present an enviable place to live for those working in the health district as well as the downtown and Brickell areas.”

Built in 2012, River Oaks Marina and Tower is located at 1951 NW South River Drive, convenient to Jackson Memorial, the Miami River and the Marlins Park Stadium in downtown Miami. The community offers one-, two- and three-bedroom units ranging in size from 720 square feet to 1,942 square feet. The pet-friendly rental tower also features a clubhouse, pool, business center, and BBQ/picnic area among other tenant amenities.

HOUSTON (Sept. 11, 2018) – Berkadia has arranged the sale and financing for Alexan Auburn Lakes, a 346-unit multifamily community located only a short distance from the prestigious Woodlands community. Senior Managing Director Ryan Epstein, Director Jennifer Ray, Associate Director Wes Breeding, and Associate Scott Bray of Berkadia’s Houston office represented the seller, Trammell Crow Residential and Prime Property Investors. Senior Managing Director Tucker Knight and Director Nick Murphy of Berkadia’s Houston office secured the financing on behalf of the buyer, Olympus Property, a Fort Worth based full service multifamily investment and property management organization with 17,000 units across 10 states.

“With continued interest from a variety of investors, Houston’s multifamily market remains competitive, even for newly built properties such as this one,” said Ryan Epstein. “Solid fundamentals that are consolidated within the Spring area of Houston made this property especially attractive, and consistent growth in the surrounding area will also enhance the standard of living for residents of this community.”

Built in 2015, Alexan Auburn Lakes is located at 6000 West Rayford Road. One-, two-, and three-bedroom units offer wood vinyl floors, granite countertops, stainless steel appliances , USB ports, keyless entry system, island kitchens and built-in Blue-Tooth speaker systems. Community amenities include two tropical pools with courtyards, bark park and groom room, and reflection lake and running trail.

Situated a short distance from The Woodlands, the community is ideally located near 21 million square feet of office, research, institutional and industrial space. High-paying centers of employment include Chevron Phillips Chemical, Maersk Line, Halliburton, CHI St. Luke’s Health and Texas Children’s Hospital. Additionally, the fast-growing Springwoods Village is less than four miles southeast, which is home to HP’s new campus and the new Exxon Mobil campus.