HOUSTON (November XX, 2021) – Berkadia announces it has secured financing for July Residential’s acquisition of Carmel Creek, a 536-unit apartment community in Houston, Texas. Senior Managing Director Mitch Sinberg, Associate Director Matthew Robbins and Senior Analyst Abigail Beauchamp of Berkadia Boca Raton secured the financing on behalf of July Residential.

This marks July Residential’s sixth property acquisition in the Houston MSA; last month, the multifamily investment firm closed on the acquisition of a five-property, 1,275-unit portfolio in Houston with debt also procured by Berkadia.

Freddie Mac provided a 10-year, fixed-rate loan, with four years interest only and a 70 percent loan to value.

“This asset fit well with July Residential’s criteria and they continue to assemble a critical mass of apartments in Houston, which is exceeding performance expectations in just about every category,” said Sinberg. “As in-migration and job growth continues, Houston’s apartment occupancy rate is on track to surpass year-end 2019 figures by mid-2022, and annual effective rent growth in the metro could approach 6 percent by then – a rate not seen since 2015.”

According to Berkadia’s 3Q2021 Report Card for Houston, effective rents rose 9.9 percent YTD to $1,207 per month, occupancy rose 220 basis points YTD to 95.2 percent, and 27,917 units were absorbed YTD – roughly three times more than originally forecasted.

“We’re elated to take possession of such a property in a market that we believe so strongly in its potential, and even more so happy to be able to do another deal with Berkadia running the debt,” said July Residential co-founder Avihai Daniell.

Located at 6000 Hollister Rd in Houston, Carmel Creek was built in 1982 and consists of one- and two-bedroom apartments ranging from 518 to 1,193 square feet. Apartments feature in-unit washer/dryer, walk-in closets, and hardwood floors. The pet-friendly community has a pool, fitness center and laundry facilities. Carmel Creek is located in the Brookhollow/Inwood neighborhood, approximately 20 miles northwest of Downtown Houston The primarily residential neighborhood is located close to amenities and less than 20 minutes from The Art Institute of Houston, the University of St. Thomas and University of Houston, Downtown.

July Residential, a New York-based investment firm, co-founded by Avihai Daniell and Isaac Pinto, specializes in the development, acquisition and operation of superior multifamily opportunities in the most desirable markets in the U.S. The company’s portfolio currently includes garden-style, mid-rise and mixed-use/new build multifamily projects throughout the U.S. Since the Covid-19 pandemic, July has acquired well over 1,500 units, and are continuing to pursue opportunities throughout the Sunbelt and Mid-Atlantic in the multifamily sector. 

Alta Developers sold the 156-unit Wynwood Bay to Respark Residential

MIAMI (December 1, 2021) – Berkadia announces it has arranged the sale and financing of Wynwood Bay, a 156-unit residential high-rise located in the Wynwood submarket of Miami, Fla. Senior Managing Directors Roberto Pesant and Jaret Turkell, along with Associate Omar Morales and Senior Analyst Jose Mota of Berkadia Miami, marketed the property on behalf of Alta Developers, a leading South Florida-based real estate development firm led by Principal & CEO Raimundo Onetto.

Managing Director Laura Beaton of Berkadia Boston arranged financing on behalf of buyer Respark Residential, a multifamily real estate investment company based in Fort Lauderdale, which acquired the property. Respark Residential plans to further amenitize the unit interiors and activate the common areas. The property was fully stabilized at the time of the sale, with rents ranging from $2,000 to $3,700 per month.

“Wynwood Bay has a lot to offer its residents, from its unique, competitive location in one of Miami’s trendiest and centrally located neighborhoods, to its spacious floorplans with unobstructed Bay and city views, and its resort-style amenities,” said Onetta. “It is luxury residential living in Miami’s liveliest location.”

“Wynwood Bay presented a rare opportunity to acquire a residential high-rise with immediate cash flow in one of the most dynamic, talked about submarkets in the country,” said Pesant. “As land prices and construction costs continue to rapidly increase, developers are building ever smaller units. This dynamic will allow Wynwood Bay to remain uniquely positioned to capture the overwhelming tenant demand for larger, more expansive floorplans.

Located at 2500 Biscayne Boulevard, Wynwood Bay was built in 2017 and offers one- and two-bedroom apartments ranging from 715 square feet to 1,284 square feet. Units feature 9- or 12-foot ceilings, modern porcelain tile flooring, floor-to-ceiling glass windows, a chef-inspired kitchen design with an open concept, large quartz countertops for a breakfast bar, energy-efficient stainless-steel appliances, climate efficient blackout and solar shades, frameless glass walk-in showers in select units, spacious balconies and terraces and full-sized washer and dryers in all units. Community amenities include a rooftop pool with private cabanas, a state-of-the-art health and wellness center, a sun deck with panoramic views of the Miami skyline and Biscayne Bay, an entertainment and resident lounge, Amazon lockers, four elevators, 241 parking spaces, and secure fob access to the building with 24-hour emergency maintenance.

Wynwood Bay is located at the intersection of Miami’s most rapidly growing and sought-after neighborhoods: Wynwood, Edgewater and Midtown Miami. Surrounded by hotels, bars, restaurants, it is in close proximity to the Wynwood Walls, The Gary Nader Art Centre and Brickell City Centre, the American Airlines Arena and Bayfront Park. It is located just 15 minutes to Miami Beach and Miami International Airport.

PIMCO provided the loan for the acquisition of Nine East 33^rd, a 157-unit/568-bed off-campus student housing property near the main entrance of Johns Hopkins University 

Baltimore, MD (November 24, 2021) – Berkadia announces it has secured a $62 million stretch senior loan for the acquisition of Nine East 33^rd, a 157-unit/568-bed off-campus student housing property located right across the street from the main entrance of Johns Hopkins University in Baltimore, MD. Aaron Moll of Berkadia Student Housing and Cody Kirkpatrick, Noam Franklin, Chinmay Bhatt and Matthew Tu of Berkadia Joint Venture Equity & Structured Capital arranged the loan from PIMCO, on behalf of HH Fund, a vertically integrated off-campus student housing owner/operator based out of Silver Spring, Maryland.

“Our team is excited to assist HH Fund as they grow their platform and look forward to assisting them on their future pipeline,” said Bhatt. “We are always aiming to partner up the most competitive sources of capital with the best-in-class owners.”

“Berkadia JV Equity & Structured Capital demonstrated a thorough understanding of the capital markets along with the student housing sector and identified the ideal capital partner in PIMCO to help us achieve our goals,” said Gary Chen, CFO of HH Fund.

Built in 2016, Nine East 33rd is the newest student housing property located right across the street from the main entrance of Johns Hopkins University with top-notch amenities, and is considered as the closest, newest and highest-quality off-market living option for students by providing specific rental terms, all-inclusive utilities and student featured amenities such as private study rooms and clubhouse. The property consists of 157 units/568 beds and 30k sf of fully occupied eight ground level retail spaces by trendy restaurants, coffee shops and anchor tenants such as CVS and Chase Bank.

Nine East 33rd represents HH Fund’s fourth community in Baltimore. 

ORLANDO (November 2, 2021) – Berkadia announced it has arranged the sale and financing of Patterson Court, a 384-unit, three-story garden-style apartment community, located at the epicenter of Orlando’s world-renowned Tourist Corridor along iconic International Drive. The property, currently master-leased to Walt Disney World Resort, traded for $107.75 million.  

Managing Directors Brett Moss and Matt Wilcox, and Associate Director Tyler Swidler of Berkadia Orlando, along with Senior Managing Director Jaret Turkell of Berkadia Miami, represented the seller, a joint venture between Miami-based Fifteen Group and Meritage Group LP, a private investment firm.

Managing Directors Scott Wadler and Brad Williamson of Berkadia Miami, and Associate Director Wesley Moczul of Berkadia Orlando, secured the acquisition financing on behalf of the buyer, Trion Properties, a private equity firm based in West Hollywood, California.

Pacific Coast Capital Partners, LLC, originated a three-year, floating-rate loan for $85 million. It includes $80 million in initial funding and $5 million in future funding for capital improvements with extension options.

Built in 2008, Patterson Court had historically been utilized by Walt Disney World Resort as housing for participants in the esteemed Disney College Program (DCP), who were recently relocated to Disney's brand-new Flamingo Crossings Village community in nearby Winter Garden. The property has since been re-leased to new renters, not necessarily tied to Disney.

“Patterson Court represented one of the most unique and story-laden value-add multifamily investment opportunities in Central Florida in recent history,” said Moss. “The market’s response to this opportunity was exceptional, and the sale of Patterson Court is emblematic of the strength of the Orlando apartment market and ever-growing investor appeal.”

Located at 8151 Patterson Woods Drive, Patterson Court offers one-, two- and three-bedroom apartments ranging from 772 square feet to 1,301 square feet. The gated community’s amenities include a fitness center, a resort-style swimming pool with a large sundeck, an expansive resident clubhouse, on-site laundry facilities, a car wash center and a cabana with billiards.

MIAMI (October 29, 2021) – Berkadia announces it has arranged a $17.15 million loan for the acquisition of 125 condos and single-family homes located within Miami-Dade County, Florida. The majority of the assets are located in Homestead and include 60 townhomes fractured condo townhomes and a scattered mix of 31 condos, 18 townhomes and 16 single-family homes.

Managing Director Brad Williamson of Berkadia Miami and Senior Managing Director Mitch Sinberg of Berkadia Boca Raton secured the financing on behalf of Frontal Trust Investment Management.

Amerant Bank provided the five-year term loan with 2 years interest only with an attractive low interest rate with flexible prepayment, plus a facility to keep growing the portfolio.

Headquartered in Santiago de Chile, Frontal Trust is a growing alternative assets manager with a focus in real estate, private debt, infrastructure and private equity. The company has over $2.5 billion in assets under management in the U.S. and Latin America as of May 2021. With a “boots on the ground” operational foundation with strong sourcing and asset management capabilities, Frontal Trust started investing in the U.S. as an LP in 2017 through a $50 million fund. It opened an office in Miami in May 2020 and shortly after, raised its second fund: a $22 million residential credit fund that originates and buys short-term loans for single-family residential assets in the U.S.

Brad Williamson said, “There has been an increase in demand for single-family rental product throughout the U.S., by both private and institutional investors, however there is not an abundance of capital providers financing this asset type. We were successful obtaining attractive terms from a range of sources including banks to Wall Street capital to maximize our clients’ overall return based on their investment strategy.”

Luis Felipe San Martin, Managing Partner of Frontal Trust U.S., added: “In a hot and fast-moving market like Florida, Berkadia’s network and understanding of the scattered SFR space was key to secure competitive financing terms in a short time frame. These terms allow us to offer an attractive risk/reward profile strategy to our private and institutional investors.”

The properties in the portfolio include:

• 60 condos (of a total of 114) in Old Biscayne Villas Condominiums, located at 13244 Old Biscayne. Built in 2006, 2007 and 2014, it consists of two- and three-bedroom units across 19 garden-style one floor buildings. Acquisition gives the sponsor 53 percent ownership and control of the HOA.
• Six three-bedroom condos at Monterey at Malibu Bay, a 125-unit community built in 2005 and located at 920 NE 33^rd Terrace. 
• 12 three-bedroom townhomes (of a total of 384 units) at Villas at Carmel, located at 1490 NE 33^rd Avenue. Built in 2005/2006, it is nestled within the Malibu Bay community.
• 18 scattered single-family homes and four townhomes in the Homestead neighborhoods of Bluewaters, Leeward, Keygate, Tennessee Estates, Bimini, Riverside and Waterstone. All are three or four-bedroom assets. 
• One three-bedroom townhome in Cutler Bay, one two-bedroom condo in Pinecrest, and one one-bedroom condo in Coral Gables.
• 22 condos in Venetian Palms and Village at the Falls in Pinecrest

Campo Felice, a 24-story luxury multifamily apartment tower, was purchased for $55 million in an off market special situation sale

Berkadia announces it has arranged financing for the acquisition of a 24-story residential tower with 323 apartment units located in the historic downtown of Fort Myers, Fla.  Campo Felice was acquired for $55 million by Westside Capital Group, a real estate investment holding firm based in Miami. The acquisition comes just two weeks after Westside made its debut in the Fort Myers market with the acquisition of another waterfront high-rise apartment property, the 265-unit Oasis Grand II, for $71 million, with the help of a $58.68 million loan also procured by Berkadia. The two properties are located less than two miles apart along the Caloosahatchee River. 

Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia Miami secured a $47.07 million loan on behalf of Westside, representing a 78 percent loan to value. Ladder Capital Finance, LLC provided the four-year, floating-rate loan, with full-term interest only.

“The exceptional location of Campo is undeniable, and it didn’t take long to find a lender who agreed with the Westside’s future vision for the property,” said Foschini. “With a strong, capable operator and the backing of a well-crafted loan, this property will increase in value through an expertly executed transformation, benefiting both residents and investors alike.”

“Campo Felice is a landmark property with spectacular amenities in the beating heart of downtown Fort Myers, which unfortunately never achieved its full potential,” said Jakub Hejl, founder and president of Westside. “Under Westside’s ownership, however, the property will immediately benefit from much-needed capital investment, operational expertise and professional management. Our first objective is to work closely with current residents to ensure that their needs are met. We are focused on making sure the transition of ownership yields only positive experiences for the senior residents currently occupying the building. At the same time, we’re also looking forward to working with our neighbors, nearby businesses and local officials as well to ensure this property becomes a true asset to the broader Fort Myers community now and well into the future.”

Located at 2500 Edwards Drive, Campo Felice was originally built as a Sheraton hotel in 1986. It sits on a 3.24-acre site on the south bank of the Caloosahatchee River, directly behind the Fort Myers Yacht Basin, a WPA (1939) marina project that has 241 boat slips. In 2015, The MacFarlane Group acquired and redeveloped the property into a luxury 55+ community. The property features one- and two-bedroom apartments with floor to ceiling windows, and an array of amenities including four dining venues, a resort-style pool with jet spa, a 2,200-square-foot fitness center, a 49-seat movie theater, salon, dog park, ballroom and 521 parking spaces. It sits in the heart of the Historic River District, within walking distance to many restaurants and shops, and easily accessible to destinations like the Florida Repertory Theatre, Fort Myers Library, JetBlue Park, FGCU, and Lee Memorial Hospital. It is also convenient to US-41, I-75, MLK Jr Blvd, as well as public bus transportation.