Developer Emmut Properties will transform the 126-room Excelsior Hotel into a Class A apartment property 

NEW YORK (January 10, 2022)Berkadia announces it has secured stretch senior financing for developer Emmut Properties’ acquisition of Excelsior Hotel, a century-old landmark hotel on Manhattan’s Upper West Side. Emmut Properties acquired the 126-room hotel, which has been closed since April 2020, for approximately $80 million, and will convert it into a 134-unit multifamily property featuring Class A finishes and amenities. The total capitalization of the transaction is more than $100 million. 

Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick of Berkadia JV Equity & Structured Capital secured an $84 million loan from Franklin BSP Realty Trust, Inc. (“FBRT”), a publicly traded real estate investment trust. The financing package consists of a $74 million senior bridge loan and a $10 million mezzanine loan, both with 18-month terms and three single-year extension options. The senior note included $9 million of future-funding commitments to help cover the cost of converting the Excelsior to a multifamily property. 

To date, the Berkadia team has closed more than $150 million in financing for Emmut Properties including a residential building at 433 West 53rd Street and a mixed-use building at 138 Bowery.  

Emmut Properties’ significant track record in Manhattan, which spans more than 25 years of success, was a critical piece to closing this deal in a generally challenging real estate market, especially in New York City,said Bhatt. “We thank everyone at FBRT and Emmut Properties for their efforts in getting this deal closed before the year’s end.” 

Located at 45 West 81st Street, the 15-story Excelsior Hotel was originally built in the 1920s as apartments and converted to a hotel in the mid-20th century. It is located between Central Park West and Columbus Avenue, across from the American Museum of Natural History. The conversion will create 134 apartments with luxurious amenities such as a fitness center, library and outdoor courtyard. Leasing is slated to begin in the first half of 2023. 

Berkadia JV Equity & Structured Capital marked a record-breaking year in 2021, having capitalized more than $2 billion* in property transactions across the country, including market rate multifamily acquisitions, ground-up multifamily projects, single-family-rental/build-to-rent communities (SFR/BTR), hotel-to-multifamily conversions, student housing assets and property recapitalizations.  

2021 was defined by unprecedented investor appetite for multifamily, single-family-rental, and student housing assets 

 
NEW YORK (January 10, 2022)Berkadia JV Equity & Structured Capital, a dedicated team of professionals at Berkadia that focuses exclusively on the equity side of the capital stack, marked a record-breaking year in 2021, having capitalized more than $2 billion* in property transactions. The team, led by Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick, sourced institutional equity partners for 49 commercial real estate transactions across the country, including market rate multifamily acquisitions, ground-up multifamily projects, single-family-rental/build-to-rent communities (SFR/BTR), hotel-to-multifamily conversions, student housing assets and property recapitalizations. Since being acquired by Berkadia in 2019, the team has capitalized more than $3 billion in property transactions, consisting of 12,927 apartment units, 1,280 student housing beds, and 1,754 SFR/BTR units across 18 different states. 
 
Berkadia JV Equity & Structured Capital is unique in the industry for its exclusive focus on equity. Drawing on their relationships with a wide variety of domestic and foreign capital sources, including HNW investors, private equity, pension funds, insurance companies and family offices, the team works with clients to structure JV equity, senior equity, preferred equity/mezzanine debt, ground leases, stretch senior A/B notes and co-GP/entity-level partnerships.  

“This has been one of the most active years ever for our team on account of the red-hot multifamily market,” said Bhatt. “There’s more capital than ever chasing multifamily deals, including a lot of foreign capital sources which previously focused on office and retail assets. Given these dynamics, we anticipate 2022 will be another strong year across the residential spectrum.” 

“Because the multifamily space has become so competitive,” added Franklin, “a big focus for us this past year has been establishing programmatic relationships between experienced sponsors and capital sources. Deals move quickly and go non-refundable early in the process, so having a capital partner already lined up allows teams to be more aggressive, which is crucial in today’s market.”  

“Unique, story-driven, value-add acquisitions and recapitalizations continue to be appealing to JV equity in addition to well-located suburban development opportunities from local or regional sponsors with a continued preference for the high growth sunbelt markets," said Kirkpatrick. 

Some of the team’s deal highlights of 2021 include: 

  • Securing a platform-level joint venture partner for SB Real Estate Partners to acquire more than $250 million of multifamily assets located in Arizona, California, and Nevada in Q3/Q4-2021 

  • Arranging a programmatic capital partner to help Capstone Communities execute its plan to continue developing approximately a $1 billion pipeline of build-to-rent (BTR) communities across the Southeast 
     

  • Sourcing a joint venture partner, EJF Capital, to contribute $31.7 million towards Toll Brothers Apartment Living®’s development of “Rafferty,” a new 218-unit multifamily rental community located in a Qualified Opportunity Zone (QOZ) in Santa Ana, CA 
     

  • Arranging a capital partner for Dallas-based Encore Multifamily to develop “Encore Lower Broadway,” a five-story, 386-unit apartment community in San Antonio, TX 

 

  • Securing a publicly traded REIT as a preferred equity partner to contribute $38.45 million toward Strategic Diversified Realty Holdings’ recapitalization of a nine-property multifamily portfolio located in Florida and Georgia valued at $290 million 
     

  • Arranging a $25 million preferred equity facility for a REIT focused on the build-to-rent (BTR) space to recapitalize its current scattered-site projects in Texas and develop more purpose-built BTR opportunities in the Dallas-Fort Worth area 
     

  • Arranging a $62 million stretch senior loan for the acquisition of Nine East 33rd, a 157-unit/568-bed, off-campus student housing property fronting Johns Hopkins University in Baltimore, MD 

Town Center Lofts, located next to the Brazos Town Center, sold in an off-market transaction to Redwood Capital Group/Heitman

HOUSTON (January 4, 2022) – Berkadia announces it has arranged the sale of Town Center Lofts, a new 309-unit multifamily community in the Rosenberg submarket of Houston.

 

Managing Director Jeffrey Skipworth, Senior Managing Directors Todd Marix and Chris Curry, along with Managing Directors Joey Rippel and Chris Young and Director Kyle Whitney of Berkadia Houston negotiated the off-market transaction between the seller, Sueba USA, and buyer, a joint venture between Redwood Capital Group and Heitman LLC (Heitman), a global real estate investment management firm.

 

“Rosenberg is one of the strongest performing multifamily submarkets in Houston,” said Skipworth. “Redwood/Heitman’s acquisition of Town Center Lofts allows the new owners to control the ‘best in class’ apartment community in the Rosenberg area.”

Located at 7204 Town Center Boulevard, Town Center Lofts was developed by Sueba USA and completed in 2021. The property offers studio, one- and two-bedroom, loft-style floor plans ranging from 560 square feet to 1,207 square feet. Apartment units feature island kitchens and granite countertops, upgraded appliances, 9- to 12-foot ceilings, oversized windows, walk-in closets, garden tubs, walk-in showers, front-loading washers and dryers, and wood-style flooring. Amenities include a leisure and lap pool, a 2,500-square-foot, 24-hour athletic center and separate workout studio for classes, community club room with chef-inspired kitchen, iMac Net Café, parcel lockers, and detached garages. The property is located next to Brazos Town Center, offering convenient access to more than 100 shopping, dining and service outlets, and less than 45 minutes from Downtown Houston.

Since its entry into the Houston market in 1984, Sueba USA has developed over 10+ million square feet of high-performing, signature multifamily projects. Today, the firm is an established leader in residential and commercial real estate, with expertise in all phases of project delivery and operations.

HOUSTON (December 13, 2021) – Berkadia announces it has arranged the sale and financing of Hollister Apartments, a 156-unit multifamily garden-style community in the Dickinson suburb of Southeast Houston. Managing Directors Chris Young and Joey Rippel and Director Kyle Whitney of Berkadia Houston represented the seller, Sunstone Properties Trust, a multifamily real estate investment manager based in Southern California.

Director Johnny King of Berkadia Houston secured acquisition financing on behalf of Lone Star Capital, a real estate investment firm based in New York. Freddie Mac originated the loan.

“Hollister apartments is well positioned between job-rich Clear Lake and Galveston beaches and offers excellent lifestyle amenities,” said Young. “Current ownership has invested $6 million in renovations, and all common areas and amenities were updated, causing a 40% rent increase. Hollister is primed for additional income gains and value appreciation under new ownership.”

Added King, “High barriers to entry due to zoning around this community has resulted in limited competition from newer product. Hence, workforce product and especially renovated communities like Hollister are positioned to outperform peers in this submarket.”

“Lone Star is excited to add Hollister to its growing Houston portfolio due to the area’s tremendous population growth and stability. Building off the seller’s strong base, our business plan includes adding smart home technology and package lockers to the asset, installing washers and dryers throughout the community, and adding a fitness center, business center, and upgraded lighting,” said Rob Beardsley, Principal of Lone Star Capital.

Built in 1976 and renovated in 2019, Hollister Apartments is located at 810 Deets Road, and offers one-, two- and three-bedroom apartments. Newly renovated units range in size from 362 square feet to 1,350 square feet and feature modern luxurious finishes, wood-style flooring, stainless steel appliances, granite countertops in kitchens and bathrooms, white shaker-style cabinets, kitchen pantries, carpeted bedrooms, ceiling fans, walk-in closets, rainfall shower heads, oval bath tubs, linen closets and private patios. Community amenities include two swimming pools with large sun decks, poolside grills, enclosed pet park, clothes care facility, mature landscaping and open green spaces, covered and reserved parking, perimeter fencing and remote-controlled access.

Situated in Dickinson, between Galvelston and Houston, the Hollister Apartments are minutes away from the Gulf 45 freeway, making it a gateway to both the beach and the big city, and are close to the Sam Vitanza Stadium, shopping, fine dining and numerous historical sites. 

Cardone Capital acquired San Michele Collection in Weston and Colonnade Residences in Sunrise; Will be folded into Cardone Capital’s 10X Living brand as 10X Living Weston and 10X Living Sunrise



MIAMI (December 13, 2021)
– Berkadia announces it has arranged the sale and financing of a two-property, multifamily portfolio in the Fort Lauderdale, Florida metropolitan area. Aventura-based Cardone Capital, Grant Cardone’s real estate investment firm, purchased 585 units at San Michele Collection and 387 units at Colonnade Residences for a combined purchase price of $355 million. In addition, Berkadia lined up a $280.3 million loan for the acquisition. Both properties were over 98 percent occupied at the time of the sale. 

Senior Managing Directors Jaret Turkell and Roberto Pesant, along with Associate Director Omar Morales, marketed the portfolio on behalf of the seller. Senior Managing Director Mitch Sinberg, Managing Director Matt Robbins and Vice President-Originations Hugo Hernandez of Berkadia Boca Raton secured acquisition financing on behalf of Cardone Capital. Lender MF1 originated a $182.9 million loan for San Michele Collection and an $97.93 million loan for Colonnade Residences. Both were three-year, floating-rate loans with two, 12-month extension options.

“Western Broward County remains one of the most desirable places to live in South Florida on account of comfortable suburban atmosphere, excellent highways and transportation infrastructure, and accessibility to major employment nodes across the region – both large corporate campuses in Palm Beach and Broward Counties, as well as downtown urban locations such as Fort Lauderdale,” said Sinberg “As more people move into South Florida from other parts of the country, well-amenitized, modern apartment communities like this one will be in high demand, and will trade at a premium.”

Located at 1343 Saint Tropez Circle, San Michele Collection was built in 1996. It offers two-, three- and four-bedroom apartments ranging from 1,194 square feet to 2,074 square feet and individual units feature contemporary plank flooring, European cabinetry, stainless steel whirlpool appliances, quartz countertops, built-in microwaves, a full-sized washer and dryer, oversized walk-in closets, and spa quality tubs or glass shower doors. The gated waterfront community amenities include a fitness center, a basketball court and tennis court, pool, spa, picnic area with a grill, a lounge and maintenance on site. Situated in Weston, San Michele Collection is close to the Weston Town Center, the Weston Hills Country Club, the Long Key Natural Area & Nature Center, with easy access to the Fort Lauderdale-Hollywood Airport.

Located at 1640 NW 128th Drive, the Colonnade Residences was built in 1996 and offers one-, two- and three-bedroom apartments ranging from 852 square feet to 1,293 square feet. Apartments offer granite countertops, vaulted ceilings, walk-in closets, extra storage space and a patio or balcony. The gated community amenities include a pool, tennis court, a clubhouse, sundeck, lounge, fitness center and a conference room.

Both properties are within five minutes of I-75 and I-595 in Broward County, offering resident extraordinary access to all of South Florida’s major employers, and within 10 minutes of the Florida Turnpike. Large corporate employers within a 20-minute drive include Royal Caribbean Cruises, American Express, Telemundo, Microsoft, Memorial Hospital West/Memorial Hospital Miramar, Hard Rock Stadium, Sawgrass Mills Mall, Seminole Hollywood Guitar Hotel, and Broward College-South Campus. The properties are less than 30 minutes from downtown Fort Lauderdale and Fort Lauderdale-Hollywood International Airport. 

Represents the largest student housing refinancing in the Southeastern U.S. this year

ORLANDO (December 9, 2021) Berkadia announces it has secured a $70.76 million bridge loan for UnionWest at Creative Village, a trophy 640-bed, mixed-use, high-rise student housing complex located in Downtown Orlando, Florida, serving the UCF/Valencia Downtown Campus. Managing Directors Michael Weinberg and Rebecca Van Reken, along with Associate Director Alec Fox of Berkadia Orlando, secured the financing on behalf of the sponsors: Development Ventures Group, Ustler Development and Halstatt Real Estate Partners.

Bank of America provided the loan which will be used to take out the existing construction loan, which Michael Weinberg arranged in 2017 in tandem with Halstatt Real Estate Partners’ equity investment in the project. The property is over 95 percent leased as of refinancing.

UnionWest at Creative Village was completed in 2019 in conjunction with the opening of the UCF/Valencia Downtown Campus with over 7,000 students.

“UnionWest is one of the most unique, mixed-use buildings in the country. It offers students and faculty a truly special experience in a dense, urban setting. The high level sponsorship and asset performance generated very competitive lender interest,” said Weinberg.

Located at 601 West Livingston Street, UnionWest at Creative Village is a 15-story high-rise representing purpose-built student housing offering four-bedroom floor plans with contemporary finishes, skyline views of Orlando, high-speed WiFi, extended cable TV, and other services. Community amenities include a resident-only Skydeck, study areas, kitchen and laundry services on each floor and the Downtown Campus recreation and wellness center. Both Valencia College and UCF lease education space in the property; Valencia leases 55,000 square feet including their new state-of-the-art Walt Disney World Center for Culinary Arts and Hospitality. UCF leases 46,910 square feet for its academic and student support services. UnionWest is an integral part of the UCF/Valencia Downtown Campus and is located across the street from the new 2.3 acre Luminary Green Park (opening in 2022).

UnionWest includes approximately 12,000 square-feet of ground floor commercial space leased to Subway, Dunkin’, Vera Asian, Qdoba and Addition Financial.  The UnionWest parking garage contains 602 spaces - approximately 300 spaces allocated for residents and the remaining 300 spaces available for public/daily parking.

Located within the Creative Village in Downtown Orlando, UnionWest is in the urban Innovation District that focuses on a live, work, learn and play lifestyle surrounded by higher education, mixed-income residential and student housing, office space, creative studios, hotels and parks. Electronic Arts Orlando Studio, with over 800 professionals, was recently completed at Creative Village.

This is the second high-profile financing that Berkadia’s Orlando-based mortgage banking team has executed in Downtown Orlando since the onset of the pandemic. In September of 2020, the team also secured a $72.9M construction take-out loan on behalf of Lincoln Property Company, Mason Capital Partners, and Pope & Land Enterprises for SunTrust Plaza at Church Street Station, a 209,000-square-foot trophy office tower.

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