Berkadia today announced that its Joint Venture Equity & Structured Capital Group has successfully capitalized over $1.2 billion in property transactions since its inception at the company in 2019.
Berkadia acquired Central Park Capital Partners, led by Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick, in March of 2019. Drawing on their diverse foreign and domestic capital relationships with high net worth investors, private equity, pension funds, insurance companies and family offices, the team is unique in the industry for its exclusive focus on the equity and structured side of the capital stack, and works with clients to structure investments throughout the capital stack including JV equity, senior equity, preferred equity/mezzanine debt, ground leases, stretch senior A/B notes and co-GP/entity-level.
“We launched Berkadia’s JV Equity & Structured Capital Group with the acquisition of Central Park Capital Partners last year. Our goal was to deliver industry leading joint venture and structured capital solutions with levels of personalization and customization that benefitted our clients,” said Justin Wheeler, Berkadia’s CEO. “The success of this team, particularly in the face of the pandemic, is a testament to their exceptional talent and experience. Private equity plays a critical role in helping clients fill financing gaps in the ever-evolving commercial real estate landscape. Our team has brought a diverse roster of new capital sources to the table and, working hand in hand with Berkadia’s debt originators and investment sales teams, has delivered enhanced joint venture matchmaking opportunities backed by best-in-class insight, technology and experience. This is only the beginning—we’re excited for what lies ahead.”
The team works coast to coast, capitalizing unique opportunities in primary, secondary and tertiary markets. With previous experience in both capital allocation and principal investment roles, the team has a unique ability to understand complex projects and deal structures.
Since establishing the JV Equity & Structured Capital Group at Berkadia, the team has capitalized over 30 transactions primarily focused on the middle-market multifamily space. Representative deals closed in the past 18 months include:
• Secured $36 million in JV Equity from a life insurance company for Stoneweg’s $114 million acquisition of a 688-unit apartment community in St. Petersburg, Fla.
• Arranged DWS as JV Equity partner for Legacy Partners’ ground-up, 226-unit apartment community in Orange County, Calif.
• Structured a programmatic equity relationship for a $186 million, 1,605-unit multifamily portfolio comprising eight properties in Florida and Georgia
• Brought a Dubai-based family office as a JV Equity partner for Phase One of Stillwater Capital’s 750-unit multifamily development in Austin, Tex.
• Secured a $13 million JV Equity partner for UIP’s condo development in the NoMa neighborhood in Washington, D.C.
• Arranged a $23 million JV Equity partner for a $71 million value-add, multifamily acquisition in Fayetteville, N.C.
• Arranged a $50 million platform-level capital partner for Monday Properties.
• Brought a $11 million JV Equity partner for a $45 million acquisition of a 579-unit, multifamily portfolio in New Orleans, La.
• Secured a $8 million preferred equity investment for the acquisition of a 147-unit, multifamily property in La Verne, Calif.
• Arranged $32 million in stretch senior financing for Emmut Properties’ new residences at 433 West 53rd Street, New York.
• Structured a collapsible ground lease and brought a capital partner for the Michaels Organization’s first Austin project, a 307-unit, $59 million ground up, multifamily property called “Zoey.”
After starting their careers in New York and Toronto, team founders Chinmay Bhatt and Noam Franklin spent collectively a decade working in the United Arab Emirates, where they established strong relationships with some of leading real estate institutions in the Middle East, Europe and Asia. Their third partner, Cody Kirkpatrick, based in Denver, began his career on the development side of the business before joining a boutique real estate investment bank. He joined the team in 2017 with an extensive range of capital relationships across the United States and helped expand the team’s geographic presence to the West Coast.
Bhatt has been recognized as a “Next Generation Honoree” by Connect Media, while Franklin has been named one of the “50 under 40” by GlobeSt.com and a “Rising Star in Real Estate” by Crain’s New York Magazine.
Berkadia today announced that it has arranged a strategic partnership between Monday Properties, an owner, operator, and industry-leading developer of commercial and residential real estate in highly targeted, supply constrained markets, and private equity firm FrontRange Capital Partners LLC of Denver, Colorado.
Berkadia’s Joint Venture Equity and Structured Capital Group, led by Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick, arranged a $50 million growth capital investment from FrontRange. The partnership is the latest in a series of moves by Monday Properties to accelerate growth in the company’s current core markets, while also fueling investments in high-quality projects in emerging submarkets.
“Despite a challenging environment, we continue to see a wide range of investment opportunities that fit into our overall, forward-looking business platform. Following our recent Shirlington Tower acquisition in Northern Virginia, as well as the construction and opening of several multifamily projects, we remain in growth mode,” said Adam Carr, Senior Vice President of Acquisitions and Investment Management at Monday Properties. “The infusion of capital through this new partnership with FrontRange positions our venture to execute on deals efficiently as opportunities present themselves.”
“We are excited to partner with Monday Properties, whose demonstrated investment and management acumen over the past 20 years has produced a successful, long-term track record,” said David Robertson, CEO of FrontRange Capital Partners. “Our partnership was facilitated by our shared view of the significant growth potential that exists in Monday’s target markets, and the management team’s proven ability to identify and execute on compelling acquisition and development opportunities. We look forward to being a part of this next phase of growth for the company.”
Berkadia announces it has arranged the sale and financing of Beach Club, a 200-unit lakefront apartment community located in Tampa. Managing Director Jason Stanton and Senior Managing Director Cole Whitaker of Berkadia’s Tampa and Orlando offices listed the property on behalf of the seller, KCB Real Estate Management.
Senior Managing Director Mitch Sinberg, Managing Director Scott Wadler and Senior Director Matt Nihan of Berkadia’s South Florida offices originated financing via Freddie Mac on behalf of the buyer, Beacon Real Estate Group. The 10-year, floating-rate loan offered an attractive rate and five years interest only.
“Beach Club represented a tremendous opportunity to implement a value-add program,” said Stanton. “With light renovations to interiors of each unit, Beach Club is well positioned to compete with similar recently renovated vintage product in this submarket.”
Located at 6904 Ralston Place Drive, Beach Club was built in 1979 and offers a mix of studio, one- and two-bedroom units ranging in size from 450 to 810 square feet. Apartments feature faux-wood flooring, a private patio or balcony, walk-in closets, and open plan kitchens with counter bar. The pet-friendly community offers resident amenities including a clubhouse, business center with free WiFi, swimming pool with sundeck, outdoor grilling areas, fitness center with cardio and strength equipment, laundry care center and private dock for lakefront fishing, and water views.
The property is ideally located on Egypt Lake, just a few minutes from I-275, approximately 15 minutes north of downtown Tampa.
Added Franklin, “La Verne is known for its highly ranked public-school system and strong demographics, with a median household income of approximately $85,000. As renters move out of Los Angeles to more affordable and nearby submarkets, La Verne has experienced significant rent growth over the past five years.”
Silver Star Real Estate is led by Harshad and Sunny Dharod and owns 39 multi-family properties across Southern California and Arizona.
Laredo, Tex. (July 21, 2020) – Berkadia announces it has arranged the sale and financing of Lago del Mar Apartments, a 260-unit garden-style apartment community located in Laredo, Texas. Senior Managing Director Ryan Epstein of Berkadia’s Houston office, along with Managing Director Mike Miller, Senior Director Will Caruth and Director Cody Courtney of Berkadia’s San Antonio office, represented the seller, a Chicago-based real estate investment management firm.
Senior Managing Director Cutt Ableson of Berkadia’s Houston office procured financing for the buyer, Haley Real Estate Group, through Fannie Mae.
“Lago del Mar is a vintage apartment complex in an excellent location that was primed for a value-add execution,” said Epstein. “Located in the economic epicenter of the Rio Grande Valley, the city of Laredo continues to benefit from economic drivers including steady growth in shale oil and gas production, infrastructure construction, and growth in logistics and warehousing, all of which brings more business to town each year.”
Added Miller, “In addition, the property benefited from limited competition, with no comparable multifamily properties currently in lease-up, under construction or proposed within five miles.”
Built in 2000/2003 and located at 7550 Country Club Drive, Lago del Mar Apartments offers a range of one-, two- , and three-bedroom floor plans averaging 776 square feet. Units feature walk-in closets, nine-foot ceilings, patios or balconies, and a full-sized washer/dryer. Community amenities include a resort-style swimming pool, clubhouse, fitness center, dog park, playground and controlled-access gate. The property is ideally located within seven miles of downtown Laredo, two miles of Texas A&M University, and just four miles from Laredo International Airport.