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Berkadia announces it has secured $11.4 million in preferred equity for the acquisition of The Reserve at Palmer Ranch, a 320-unit apartment community located in Sarasota, Fla. Cody Kirkpatrick, Noam Franklin and Chinmay Bhatt of Berkadia Joint Venture Equity & Structured Capital sourced the equity investment from a publicly traded REIT on behalf of Strategic Diversified Real Estate Holdings, a vertically integrated real estate platform based out of Westlake Village, California.
This transaction is part of a programmatic venture of nine assets totaling 1,925 units in Strategic Holdings’ portfolio. Since May 2020, Berkadia has secured a total of $38.45 million in preferred equity for the $290 million, nine-property portfolio. All the assets are located in Florida and Georgia.
“Our team is excited to assist Strategic Holdings as they grow their platform,” said Kirkpatrick. “We are always trying to partner up the most competitive sources of capital with best in class owners and know this programmatic relationship between the two parties will be a long term relationship that will benefit both sides well into the future.”
“Strategic Holdings is excited to own The Reserve at Palmer Ranch and we have loved working with Berkadia’s JV Equity & Structured Capital Group,” said Brian Alonge, CFO of Strategic Holdings. “They let our team focus on what we do best and Berkadia handles the rest of the capital markets equation.”
The nine properties in the programmatic recapitalization include:
· The Reserve at Palmer Ranch, a 320-unit community located at 4110 Winners Cir in Sarasota.
· Water’s Edge, a 184-unit community located at 2220 Gloria Cir in Pensacola, Florida.
· Hunters Pointe, a 204-unit community located at 7591 US 98 in Pensacola.
· Belmont Crossing, a 192-unit community located at 1940 Atlanta Rd SE in Smyrna, Georgia.
· Georgetown Crossing, a 168-unit community located at 1015 King George BLVD in Savannah, Georgia.
· Sierra Terrace, a 135-unit community located at 3547 Buford Hwy NE in Atlanta.
· Sierra Village, a 154-unit community located at 2615 Oak Shadow Ln NE in Atlanta.
· The Commons Apartments, a 328-unit community located at 1721 Anniston Rd in Jacksonville, Florida.
· Park on the Square, a 240-unit community located at 9009 University Pkwy in Pensacola.
Berkadia Secures $15.77M in Equity for Encore Enterprises to Develop 386-Unit Apartment Community in San Antonio
Berkadia announces it has sourced a capital partner for Dallas-based Encore Multifamily, a division of Encore Enterprises, development of a class A apartment community in San Antonio, Texas. The “Encore Lower Broadway” development will be a five-story, 386-unit apartment community built on a 4.2-acre site located on the corner of East Grayson Street and North Alamo Street across from the Pearl District. The site is adjacent to the larger overall Broadway East master-planned development, which will feature 700,000 square feet of office space, 200,000 square feet of high-end retail space developed over multiple phases, a planned W Hotel, and other lifestyle amenities. Groundbreaking on Encore Lower Broadway apartments is expected in August 2021.
Cody Kirkpatrick, Noam Franklin, and Chinmay Bhatt of Berkadia JV Equity & Structured Capital secured the capital partner, which is providing a $15.77 million equity investment on top of a $51 million construction loan from Citizens Bank. Earlier this year, the team also sourced a capital partner for Encore Enterprise’s Encore Chandler project – a 208-unit, class A multifamily development located in a qualified Opportunity Zone in a suburb of Phoenix, Arizona.
“Encore Lower Broadway illustrates Encore’s expertise in sourcing well-located infill sites in up-and-coming urban markets where there are a plethora of diverse demand drivers and a healthy renter pool,” said Kirkpatrick. “The capital partner we sourced for Encore’s ground-up OZ project in Chandler, Arizona was very glad to be chosen for this opportunity and both sides are excited for a future pipeline of potential deal flow going forward.”
“We are excited to work with the Berkadia JV Equity & Structured Capital team once again,” said President of Encore Multifamily, Charlie Keels. “This project continues to prove our strength as a multifamily developer despite the heightened challenges of the pandemic, including sourcing land, obtaining entitlements, securing financing, and successfully overcoming construction hurdles across our properties under development, resulting in rents, occupancy, and lease-ups that are generally outperforming their respective market averages.”
Encore Lower Broadway will bring a thoughtful, carefully crafted, urban mixed-use environment where residents will have a true ‘live/work/play’ experience. The 386-unit luxury apartment community will offer a variety of one-bedroom and two-bedroom units with an average size of 836 square feet and a centrally located structured parking garage. Additional amenities include a swimming pool, rooftop deck, dog park, bike storage, fitness center, and clubhouse featuring a clubroom with entertainment, kitchen, coffee bar, media lounge, business center with a conference room, private offices, communal workspaces, and 24-hour package delivery system. The project will benefit from walkability and proximity to numerous neighborhood amenities and large office tenants, including Jefferson Bank, Bank of America, Credit Human, and the Alamo College District. It is located just a half-mile from The Park at Pearl and the San Antonio River Walk, 1.5 miles to downtown and the Alamo District, and 7 miles to the San Antonio International Airport.
Berkadia announces it has arranged a $25 million preferred equity facility for a REIT focused on the Build-to-Rent (BTR) space in Texas. Berkadia JV Equity & Structured Capital, led by Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick, secured the capital provider.
The preferred equity line will be used to help recapitalize the REIT’s current scattered-site projects and will be used for the development of future purpose-built BTR opportunities in the Dallas-Fort Worth area.
“We have seen an enormous amount of capital rushing into the Build-to-Rent space and our goal was to identify the right capital partner for our client as they plan to grow quickly, and sought a group that would be flexible and creative with their structure,” said Kirkpatrick. “This investment is the first of a larger program that will ensure our client has the capital it needs now and down the road. The BTR space is so competitive that capital providers need to offer something unique in exchange for the opportunity to invest with best-in-class sponsors in the space,” added Franklin.
The BTR space has continued to gain popularity in recent years as home prices have risen to their highest levels since April 2006. In 2020, occupancy rates reached a 20-year high, with nearly 95 percent occupancy across the U.S. and in Q2 of that year, over a third of the total rental housing stock consisted of BTR homes.
BOSTON (February 1, 2021) – Berkadia announces it has secured financing for the recapitalization of a multifamily portfolio consisting of 11 individual properties totaling 89 units located throughout the Boston metropolitan area. Senior Managing Director Mitch Sinberg and Associate Director Matthew Robbins of Berkadia’s Boca Raton office, and Associate Director Wesley Moczul of Berkadia’s Orlando office, secured a $17.5 million loan via Fannie Mae on behalf the sponsor, BT Holland Real Estate.
The 12-year, fixed-rate loan has a 75 percent LTV ratio.
”This is an assemblage of smaller properties in up-and-coming neighborhoods in the greater Boston metro area that are benefiting from strong rent growth dynamics,” said Robbins. “By compiling these properties into one portfolio the sponsor was able to obtain a cross-collateralized loan with more favorable terms and economics.”
The multifamily properties in the portfolio include:
· 28 Dyer St, Dorchester, MA 02124 (6 Units, 1920 Vintage)
· 30 Browning Ave, Dorchester, MA 02124 (6 Units, 1920 Vintage)
· 31 Browning Ave, Dorchester, MA 02124 (6 Units, 1900 Vintage)
· 35 Browning Ave, Dorchester, MA 02124 (6 Units, 1920 Vintage)
· 38 Stanton St, Dorchester, MA 02124 (6 Units, 1910 Vintage)
· 54 Fuller St, Dorchester, MA 02124 (6 Units, 1988 Vintage)
· 5 Orlando St, Mattapan, MA 02126 (11 Units, 1965 Vintage)
· 14 Orlando St, Mattapan, MA 02126 (6 Units, 1965 Vintage)
· 14-16-18 Msgr Patrick J Lydon Way, Dorchester, MA, 02124 (15 Units, 1910 Vintage)
· 140 Wellington Hill, Mattapan, MA, 02126 (16 Units, 1965 Vintage)
· 17 Greenwich Park, Boston, MA, 02118 (5 Units, 1910 Vintage)
The Praedium Group acquired the 312-unit Gatehouse on the Green in Plantation
MIAMI (January 19, 2021) – Berkadia announces it has provided a loan for the acquisition of Gatehouse on the Green, a 312-unit value-add apartment community located in the Broward County city of Plantation, Fla. Senior Managing Director Charles J. Foschini and Managing Director Chris Apone of Berkadia’s Miami office arranged $47.78 million in financing through Fannie Mae for sponsor The Praedium Group to acquire the property.
It is a seven-year, fixed-rate loan, with five years interest only at a 65 percent LTV.
“The Gatehouse project is an extraordinary asset both in its physical design and exceptional location in Broward County,” said Foschini. “Fannie Mae recognized that with a highly structured loan containing both a favorable rate and extended interest only period.”
Located at 150 SW 91st Avenue, Gatehouse on the Green was built in 1991 and consists of 12 two-and three-story garden-style buildings on a 21.1-acre site, with 627 parking spaces. Buildings feature a mix of one-, two- and three-bedroom apartments ranging in size from 804 square feet to 1,225 square feet. Individual units offer nine-foot ceilings (vaulted ceilings on top floors), walk-in closets, full-size washer/dryer, and a balcony. Community amenities include two swimming pools, a wading pool, an outdoor grill area, indoor racquetball court, two lighted tennis courts, clubhouse with complimentary Wi-Fi, billiard room, valet trash and recycling, car wash area, carport parking, traffic-control gated entry, and views of the Jacaranda Golf Course and Country Club.
Gatehouse on the Green is ideally located just off of Broward Boulevard, within three miles of over seven million square feet of office space. The property is just a few minutes from Nova University, Sawgrass Mills Mall, Seminole Hard Rock Hotel and Casino, and Fort Lauderdale-Hollywood International Airport, and proximate to major employment centers in both Sunrise and Fort Lauderdale.
Berkadia Secures $41.37 Million Loan for GMF Capital’s Acquisition of Apartments in Historic Tampa Neighborhood
Tampa, Fla. (January 5, 2020) – Berkadia announces it has arranged a loan for the acquisition of Bainbridge Ybor City, a 240-unit luxury apartment community in the Ybor City National Landmark Historic District of Tampa, Fla. Senior Managing Director Mitch Sinberg and Associate Director Matthew Robbins of Berkadia’s South Florida mortgage banking team secured a $41.37 million loan on behalf the sponsor, GMF Capital.
Berkadia originated, and Freddie Mac purchased, the 10-year, floating-rate loan with five years of interest only.
Jared Frydman, Managing Director of Acquisitions with GMF Capital, noted, “This property fits well with our long-term objective of building a portfolio comprising high-quality assets in growth markets with attractive economic and demographic fundamentals. Our team was equally impressed with the quality of Berkadia’s overall execution of this assignment, and we have a great deal of confidence in this team’s ability to help us achieve our long-term business goals.”
Developed in 2017 by Bainbridge Companies, the property is located at 1512 East 12th Avenue in Ybor City, the only neighborhood on Florida’s west coast to be designated a National Historic Landmark District. The property features studio, one- and two-bedroom floor plans with designer touches including hardwood-style flooring; chef-inspired kitchens with large center islands, stainless steel appliances and quartz countertops; in-suite washer & dryer; patio or balcony; oversized walk-in closets; and built-in storage.
Community amenities include a South Beach-style pool and sundeck, 24-hour fitness center, yoga studio and personal training room, clubroom with arcade and catering kitchen, elevator access and secure parking garage, and opulent greenways.
Located within a few steps of the many eclectic bars, restaurants, coffee shops and entertainment venues located along 7th Avenue, the property offers residents a highly walkable, dynamic live-work-play environment, with immediate access to I-4 just 10 minutes from downtown Tampa.