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.

Berkadia Scores $26.25 Million Loan for Westside Capital Group’s Acquisition of Tampa Multifamily Community

Westside plans to invest $100 million in Wellswood neighborhood’s transformation

TAMPA, Fla. (September 13, 2019) – Berkadia announces it has arranged a $26.25 million loan for the acquisition of Watermans Crossing Apartments, a 337-unit garden-style apartment community located in the Wellswood submarket of Tampa, Fla. Senior Managing Director Charles Foschini and Managing Director Chris Apone of Berkadia’s Miami office arranged the loan on behalf of Westside Capital Group, a diversified real estate investment firm based in Miami led by Jakub Hejl.

Bridge Investment Group provided the five-year, floating rate loan.

Westside acquired the property for $29.5 million and intends to invest up to $5 million in capital improvements, while rebranding the property “Westshore Crossing.” Neil Rollnick, a partner in Hinshaw & Culbertson LLP’s Miami office, advised Westside on the acquisition. Westside has a $150 million portfolio of cash-flowing assets and nearly $500 million of owned assets in its development pipeline.

As part of the acquisition, Westside removed all Land Use Restriction Agreement (“LURA”) limitations that were previously encumbering the property and has assessed development potential of up to 72 new multifamily units on the property. Westside anticipates an additional $8 million of investment expenses should it develop these units.

“Jakub (Westside) has a highly developed sense for spotting value,” explained Foschini. “Where most saw complications in the land use restriction agreement, the distress of a greater portfolio that influenced this asset, and the extended time frames to unwind it all, Jakub saw opportunity. Working together, we were able to find a lender who shared that vision and unlock the value of this property before a paintbrush was lifted. This is an exceptional investment opportunity and a good loan for the lender, who provided the capital for the acquisition as well as the capital improvements, thereby supporting Westside as they re-imagine another multifamily community for the benefit of both residents and investors.”

This is Westside’s second investment in the Wellswood submarket of Tampa. In 2018, Westside acquired Buena Vista, a 240-unit multifamily community less than a mile from Watermans Crossing, for $21.25 million, with $19.43 million in financing also secured by Berkadia.

 “Watermans Crossing is one more step in our mission to invest in distressed yet well-located assets that we turn into high-quality housing for residents at affordable rents,” said Jakub Hejl, Westside’s Founder and President. “Between our acquisitions and planned capital improvements, we have now invested approximately $70 million in two properties within a one-mile radius in the Wellswood neighborhood, with a significant portion of that capital contributing to improving quality of life for our residents and enhanced curb appeal of our properties. Our investments contribute to the massive growth of this neighborhood, together with development of single-family homes, hospitals, medical office spaces as well as the new Bank of Tampa building scheduled to open in summer 2020. We’re excited to strategically grow our portfolio within the Tampa market, and we plan on completing another investment, rounding out our Tampa portfolio to approximately $100 million.” 

He added, “This particular investment demonstrates Westside’s ability to work through special situation acquisitions and execute on a distressed sale, including a deed-in-lieu foreclosure, which is a rare opportunity to find late in the cycle.”

Built in 1973 and located at 4515 N. Rome Ave, Watermans Crossing comprises 20 buildings on a 13.4-acre site. The unit mix offers efficient studio, one-bedroom, two-bedroom and three-bedroom floorplans with units averaging 895 square feet. Community amenities include a clubhouse, 876 parking spots, a fitness center, three swimming pools and other tenant amenities. Westside aims to update common areas and perform targeted interior unit upgrades.

The property is ideally located on the Hillsborough River near Al Lopez Park, St. Joseph’s Children’s Hospital and Raymond James Stadium home to the Tampa Bay Buccaneers of the National Football League (NFL).

Berkadia Adds Top Debt Producer to Orlando Team

Rebecca Van Reken joins the firm as Managing Director

ORLANDO (September 16, 2019) – Berkadia announced today that it has hired Rebecca Van Reken as Managing Director. Van Reken specializes in debt and equity placement for commercial real estate transactions across all asset types. She will be based in Berkadia’s Orlando office, where she will co-lead a top-producing team of capital markets professionals alongside Michael Weinberg, who joined Berkadia in August.

 “We’re fortunate to have Van Reken co-leading the Orlando team,” said Hilary Provinse, Berkadia Executive Vice President and Head of Mortgage Banking. “She brings over 15 years of expertise in lending and structured finance, and is admired among her peers for her deep market expertise and capabilities as a team leader.”

Prior to joining Berkadia, Van Reken served as Managing Director of HFF’s Orlando office. Previously, she also worked as Executive Vice President for A10 Capital, a private real estate lender, and at CapitalSource, where she spent almost 10 years in loan origination and portfolio management roles. She holds an MBA from Rollins College, Crummer Graduate School of Business and a BA from Calvin College, is a member of the International Council of Shopping Centers (ICSC) and CREW, and holds a Florida real estate license.