Scott Plaza was sold to LEDG Capital

HOUSTON– Berkadia announces it has arranged the sale of Scott Plaza, a 150-unit apartment community located in Houston, Texas. Associate Director Scott Bray, Senior Managing Director Ryan Epstein and Senior Director Jennifer Ray of Berkadia’s Houston office, together with Berkadia Affordable, marketed the property on behalf of the seller, Scott Plaza Associates Ltd. LEDG Capital purchased the property.

“Scott Plaza is located in a qualified census tract and designated Opportunity Zone, and the property maintains a 20-year project-based Section 8 HAP contract covering 70% of its units. The acquisition furthered LEDG Capital’s commitment to preservation of existing affordable housing stock as an essential element of community development,” said Bray.

The buyer plans to continue the vision of the previous owner (who owned the community for nearly 20 years) by making additional improvements to the property and surrounding area. The buyer and seller both worked together to get this transaction completed despite some of the unique challenges posed by the COVID-19 pandemic.

Located at 9703 Scott Street in the Sunnyside neighborhood of south Houston, Scott Plaza was built in 1970 and is a two-story garden-style property featuring two-bedroom townhome floor plans. Average unit sizes are 858 square feet.

Scott Plaza is conveniently located just five minutes from State Highway 288 and Interstate 610, and five miles south of the Texas Medical Center, the largest medical district in the world.

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.

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. 

Berkadia today announced that it has secured a capital partner for The Michaels Organization’s new luxury living rental apartment community in Austin, Texas. The $59 million multifamily development, called Zoey, marks Michaels’ first entrance into the Austin market.

Berkadia’s Joint Venture Equity and Structured Capital Group, led by Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick, identified and then helped structure the deal between the capital partner and the developer.

 “We were excited to help a long-time Berkadia client, The Michaels Organization, in finding them the right capital partner for an exciting project in the one of the most vibrant markets in the country,” said Kirkpatrick.

Located at 5700 East Riverside Drive, the upscale Zoey will offer convenient living right near the Colorado River waterfront, near employment, entertainment, and recreational centers, and within close proximity to major highways and public transportation.

 When complete in late summer 2021, Zoey will offer 307 apartment homes in a mid-rise building featuring both five and six stories. Amenities include structured parking, fitness areas, co-working spaces, and lounges. Outdoor amenities will include a pool, bike storage, and a dog wash station, along with green spaces.

 “Michaels has always loved the culture and energy of Austin and we are thrilled to become part of the community,” said Steve Hillebrand, Managing Vice President of Development at The Michaels Organization. “Our team is looking forward to delivering an exceptional high-quality, value-focused asset to Austin that reflects our mission to lift lives wherever we build and manage.” 

 Although this is Michaels’ first entry into the Austin market, the organization is not new to the state, having long owned and managed affordable living communities in both Houston and Midland, Texas. Later this summer, Michaels will open Mission Trail at El Camino Real, a new mixed-income housing community in nearby San Marcos, Texas, that will serve the city’s growing workforce. 

 Apartments at Zoey will be offered in a variety of floorplans, ranging in size from studios to three-bedrooms. All will feature modern designs with plank flooring, granite countertops, and spacious closets. Of the 307 apartments, 38 of the studios will be designated as affordable.

MSC Architects, LLC. of Dallas, Texas is serving as the master architect and Michaels Construction is the general contractor. Michaels will also provide property management services, ensuring Zoey remains a community asset for the long term.

Berkadia Secures $22.8M Refinancing of Orlando Apartments

Orlando, Fla. (October 3, 2019) – Berkadia announces it has secured a $22.8 million loan for the recapitalization of Avery Place Villas, a 172-unit garden-style apartment community located in Orlando, Florida. Senior Managing Director Charles Foschini and Managing Director Chris Apone of Berkadia’s Miami, Florida office, along with Senior Managing Director John Reed and Vice President Pauline Crytzer of Berkadia’s Richmond, Virginia office arranged the financing on behalf of BW Avery Place, LLC.

Berkadia originated and Freddie Mac purchased the 10-year, fixed-rate loan, with five years interest only and a 75 percent loan to value.

“We’ve been fortunate to represent this sponsor twice on this property,” said Foschini. “When Beachwold acquired the deal thru Berkadia two years ago, we originated a bridge loan thru a life company correspondent which provided the capital to transform the asset and fulfill the owner’s vision for the community. Upon stabilization, we were able to take advantage of that value creation with an aggressive refinance through Freddie Mac. Working together with our Virginia-based capital markets team, we secured a low fixed-rate and enviable interest-only period to ensure the success of the investment for many years to come.”

Located at 5917 Mustang Place, Avery Place was built in 1984 and consists of single-story one-, two- and three-bedroom units ranging from 970 square feet to 1,535 square feet. Units include washer/dryer, attached garages, and cathedral ceilings in some units. Community amenities include a twin pool oasis with WiFi, a 24-hour fitness center, internet café, business center and lighted tennis courts.

The property is located in a mature Orlando neighborhood, roughly five miles from downtown Orlando, and is easily accessible via Curry Ford Rd., a major throughway.

Afton Properties acquired the 800-unit Sunset Ridge Apartments in Lancaster

LOS ANGELES (Sept. 19, 2019) – Berkadia announces it has secured financing for Afton Property’s acquisition of Sunset Ridge Apartments, an 800-unit mixed-income garden-style community in Lancaster, California.

Berkadia originated, and Freddie Mac purchased, a $108.7 million 15-year, fixed rate loan, with eight years interest only through its Targeted Affordable Housing program. Senior Managing Director Mitch Sinberg, Associate Director Matthew Robbins and Senior Analyst Abigail Beauchamp of Berkadia’s Boca Raton, Florida office secured the financing on behalf of Los Angeles-based Afton.

“We're excited to have acquired such an incredible asset, and are looking forward to providing high-quality affordable housing,” said Reuven Gradon, President of Afton Properties.

“The property is situated in a unique position in that it helps satisfy demand for affordable and market rate housing while demonstrating upside subsequent to value-add improvements carried out by the previous owner,” added Sinberg. “Even with regulatory restrictions currently set in place, the property’s ability to qualify for tax credits in a market with strong demand drivers make this a compelling investment opportunity.”

Built in four separate 200-unit phases between 1986 and 1988, Sunset Ridge is located at 43436 16th Street West. One-, two- and three-bedroom units include fully equipped kitchens, pantry, dishwasher and ceiling fans. Community amenities include a laundry facility, on-site maintenance, a fitness center and swimming pool.