Raleigh, N.C. (June 26, 2020) - Berkadia announces it has secured two loans totaling $11,765,000 million for the acquisition of two value-add self-storage assets located in Raleigh and Durham, North Carolina. Managing Directors Michael Weinberg and Rebecca Van Reken from Berkadia’s Orlando office, along with Managing Director Saul Hoppenstein of Berkadia’s Boca Raton office, secured the financing on behalf of Liberty Investment Properties, a privately held real estate investment, development, and management firm based in Orlando, Florida.

A life company provided both five-year, fixed-rate loans, at a 65 percent loan to cost. These assets will go into Liberty’s new $20 million opportunistic storage equity fund, which pursues value-add self-storage facilities throughout the southeastern United States. Liberty plans to rebrand both assets under their My Neighborhood Storage Center platform. With over 30 years of institutional investment and operations in the storage industry, Liberty is poised for the opportunity to expand its portfolio holdings. 

“The sponsor has a proven track record in the self-storage facility space and will be able to improve both properties’ performance through a mix of traditional and hands-on guerilla marketing,” said Weinberg.

“We are thankful for the longstanding relationship with Berkadia to successfully execute attractive financing for these transactions during the challenging times facing our economy,” said Adam Mikkelson, President of Liberty Investment Properties.

Built in 2016, the Raleigh Self Storage facility is located at 6401 Town Center Drive in Raleigh, and is a two-story, 72,614-square-foot climate-controlled building with 685 units. The property is strategically located along the interchange of US-1 and Interstate 540, making the facility easily accessible to a population of approximately 81,000 within a 3-mile radius. 

Built in 2017, the Durham Self Storage property is located at 112 West Seminary Avenue in Durham. It is a 58,729-square-foot, four-story climate-controlled property with 645 units. 

Fayetteville, North Carolina (June 15, 2020) – Berkadia announces it has secured a loan for the acquisition of Ardmore Pointe, a 291-unit apartment community located in Fayetteville, North Carolina. Senior Managing Director Mitch Sinberg of Berkadia’s Boca Raton office and Managing Director Brad Williamson of Berkadia’s Miami office secured the financing on behalf of One Real Estate Investments (OREI), a privately owned, Miami-based real estate investment and asset management company. 

Berkadia originated the Fannie Mae-backed, 3.01% fixed rate for 10-years on an acquisition loan, at 65 percent loan to value.

This is the second apartment acquisition loan Berkadia has arranged for sponsor OREI in the past 30 days. In May, Berkadia secured debt for OREI’s acquisition of the 192-unit Element at University Park in College Station, Texas.

“With limited new multifamily development in the Fayetteville market over the past few years, occupancy at this property is strong – above 95 percent – and the new owners have the opportunity to generate more value with enhancements to the fitness center, existing dog park and the addition of a new walking trail,” said Williamson. “Thus far, the Fayetteville market has fared well during Covid-19. OREI added their second asset in this market to their portfolio, Plantation at Fayetteville, last year.” 

“As we increase our national presence, OREI has continued to invest in North Carolina multifamily. This is our third acquisition in the state and we are positioned for sustained growth of our portfolio,” said Jeronimo Hirschfeld, CEO and Founder of One Real Estate Investment. 

Located at 3325 Oak Forest Dr, Ardmore Pointe was built in 2012 and is a garden-style (three-story) property with one-, two- and three-bedroom floor plans. Average unit size is 1,051 square feet. Community amenities include a clubhouse and pool, pet play area,   fitness center and car wash station. The property is well-located in the growing southwest section of Fayetteville, minutes from local schools, shopping centers, restaurants and large employers such as Fort Bragg, and the new VA medical center. 

MIAMI (June 15, 2020) – Berkadia announces it has secured $97 million in construction-to-permanent financing two new residential towers and structured parking in Sunny Isles Beach, Florida. The financing will be used to develop two 17-story, 128-unit residential towers – Las Marinas Apartments – next to an existing 336-unit, 16-story rental tower, Marina del Mar. The proceeds of the loan also cover construction of an 8-story, 860-space structured parking garage and new seawall.  

Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia’s Miami office arranged the financing on behalf of sponsor The Brunetti Organization, a privately owned real estate investment and development firm. 

A life company provided the 15-year, fixed-rate permanent construction loan with five years interest only.  

 “Las Marinas will deliver new high-end apartments to the Sunny Isles market, which is predominantly composed of luxury condos,” said Foschini.  “A construction-to-permanent loan is one of the most unique executions within the capital markets. In one transaction, capital is provided that allows not only for the development of the towers but locks in an interest rate today for a project that will not be built and stable for several years from now. To achieve this in the middle of a pandemic required a Promethean effort from all parties on both sides of the transaction.”

Foschini added that the design/construction/legal team were instrumental in navigating these challenges, specifically:  Jorge G. Vigil, attorney for the sponsor; Donald H. Dissinger, Principal, Ewing Cole; and Brad Meltzer, President, Plaza Construction. 

Located at 100 Kings Point Drive in Sunny Isles Beach, the Las Marinas development is on an 8.6-acre site surrounded by the Intracoastal Waterway. The existing residential tower, Marina del Mar, was constructed in 1962. The first phase will involve upgrades to the existing tower, and construction of the parking garage and a seawall for each new apartment tower. Construction on the towers, slated to begin in July 2020 will take a total of 24 months. The towers will offer high-end finishes, an unparalleled amenity package, and walkable access to the beach coupled with Intracoastal views. 

The portfolio includes 1,217 workforce housing units in Florida and Georgia 

NEW YORK (May 18, 2020) – Berkadia today announced that it has arranged an equity recapitalization for a $138 million, 1,217-unit multifamily portfolio comprising six properties in Florida and Georgia. Berkadia’s Joint Venture Equity and Structured Capital Group, led by Noam Franklin, Chinmay Bhatt and Cody Kirkpatrick, sourced the new equity investment from a publicly traded REIT on behalf of Strategic Holdings, a vertically integrated real estate platform based out of Westlake Village, California.

The equity investment comes behind senior Fannie Mae/Freddie Mac loans on each property and gives Strategic Holdings ample capital to target new acquisitions throughout the Southeastern United States. Jeremy Lynch, Director of Mortgage Banking in Berkadia’s Philadelphia office, originated four of the six agency loans in the portfolio.

“Strategic Holdings was looking for a new equity partner that would recognize the value that they had already created with additional upside still remaining,” said Noam Franklin, Managing Director and Head of Eastern US for Berkadia’s JV Equity & Structured Capital Group. “The high caliber of the sponsor combined with the Sunbelt location of the properties in the portfolio allowed our team to generate a lot of interest in this portfolio immediately. Strategic Holdings ultimately decided on a publicly traded REIT that understood its long-term vision.”

Brian Alonge, Chief Financial Officer of Strategic Holdings, added “We trusted Berkadia’s JV Equity & Structured Capital Group to identify the right capital partner that would deliver the terms we were looking for. We are excited to further enhance these properties while having fresh capital for new acquisitions as we move forward.” 

Strategic Holdings acquired the six properties in the portfolio between 2016 and 2019. The properties are:

·         Belmont Crossing – Smyrna, GA, 192 units, 1964 vintage

·         Park on the Square – Pensacola, FL, 240 units, 1999 vintage

·         Sierra Terrace – Atlanta, GA, 135 units, 1968 vintage

·         Sierra Village – Atlanta, GA, 154 units, 1973 vintage

·         The Commons – Jacksonville, FL, 328 units, 1975 vintage

·         Georgetown Crossing – Savannah, GA, 168 units, 1994 vintage

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About Berkadia®:

Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com.