Berkadia announces it has secured a $27.69 million loan for the acquisition of 161 out of 248 units at Harbourtowne at Country Woods, a fractured condominium community in Palm Harbor, Florida. Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia Miami arranged the financing on behalf of the buyer, ESG Kullen.
A regional bank provided the five-year loan at a highly competitive spread that included three-years of interest only and future funding for additional unit purchases and CapEx renovations.
“ESG Kullen was able to capitalize on their successful track record in the fractured condo space and identify a highly desirable fractured condo community in a high growth market, with a significant asset level of upside opportunities,” said Apone. “Their long-term experience in this asset space, and the Florida markets, provided an array of debt options with a bank execution that offered the best combination of flexibility and leverage, while also bringing a highly competitive interest rate versus traditional debt fund lenders.”
Located at 1697 Nantucket Court, Harbourtowne at Country Woods offers one-, two- and three-bedroom units that average from 675 to 1,300 square feet. Individual amenities feature all-electric kitchens, ceiling fans, central air and heating, a pantry, walk-in closets, washer and dryers or connections and wood burning fireplaces. Community amenities include a swimming pool, spa, fitness center, tennis court, racquetball court, a picnic area with barbecue, a clubhouse, guest parking and on-call maintenance.
Harbourtown at Country Woods is nestled between St. Petersburg and Tampa and offers easy access to County Road 1, close to the Gulf of Mexico beaches, The Caladesi Island State Park, the Innisbrook Resort & Golf Club, the Fred Marquis Pinellas trail, Pop Stansell Park and it is 30 minutes away from the Tampa International Airport.
Admiral Capital Group and ESG Kullen announced the successful sale of Trellis at the Lakes, a 688-unit multifamily property located in St. Petersburg, Florida, in the Tampa MSA.
Admiral and ESG acquired the apartment community for $80.9 million in September 2016 through a joint venture. The investment provided an opportunity to purchase a well-located asset in at a discount to replacement cost and provide a value housing alternative to the rapidly growing workforce in one of the top growth markets in the United States. The asset was sold for $114 million, representing an increase of over 40% in value.
During its ownership, the joint venture set to improve the aesthetics and overall experience for tenants. The partnership renamed and repositioned the property through exterior enhancements, by curing deferred maintenance and upgrading unit interiors. Select improvements included construction of a new state-of-the-art fitness center, pool area enhancements, new outdoor kitchens, other amenity upgrades and landscaping improvements across the property. Interior renovations included upgrading countertops, modernizing kitchens with new cabinets, appliances and flooring and renovating bathrooms. The upgrades and improvements to reposition the property enhanced the offering to potential tenants and provide a high-quality, cost-effective alternative to newer nearby assets with higher overall rents.
“Identifying under-capitalized assets in markets with a supply and demand imbalance has been a critical part of our growth and success in the multifamily space,” said Dan Bassichis, co-founder of Admiral Capital Group. “With its strong fundamentals and accelerating job and population growth, Tampa has been a key market for Admiral, and this property was an ideal fit for executing our value-add investment strategy. We couldn’t be more pleased with the execution with ESG Kullen.”
Trellis is Admiral’s second real estate asset in Tampa. Nationally, Admiral has acquired over 12,800 multifamily units, 1.8 million square feet of office, 790,000 square feet of retail and 900 hotel keys. Trellis at the Lakes was Admiral’s first of two acquisitions with ESG Kullen. In addition to Trellis at the Lakes, Admiral partnered with ESG to purchase a fractured condominium property in Orlando.
"The Trellis sale is particularly exciting to us as it validates our Florida re-positioning thesis which focuses on design, value, sustainability and engagement,” said ESG Kullen principal, Eric Granowsky. “We still see outsized performance in Central Florida as population growth, projected jobs growth, and supply/demand fundamentals continue to support strong multifamily absorption and look forward to replicating this success with Admiral Capital and share its commitment to strengthening communities across the country.”
Vice Chairman Patrick Dufour, Directors Ryan Crowley and Andrew Visnick, and Associate Pibu Aulakh represented the seller in the disposition.
The 264-unit Grand Pavilion sold for $32.77 million to Praxis Capital
Tampa, Fla. (November 2, 2020) – Berkadia announces it has arranged the sale and financing of Grand Pavilion, a 264-unit garden-style multifamily community located in Tampa. Senior Managing Director Cole Whitaker and Managing Director Jason Stanton of Berkadia’s Tampa and Orlando offices listed the property on behalf of the seller, ESG Kullen. Berkadia worked in conjunction on transaction with BlueGate Partners, LLC out of New York, represented by Mark DeLillo and Craig Callaway.
Senior Managing Director Mitch Sinberg and Associate Director Matt Robbins of Berkadia’s Boca Raton office originated $24.4 million in financing via Freddie Mac on behalf of the buyer, Praxis Capital, which acquired the property for $32.77 million. The 10-year, floating-rate loan offered an attractive rate and five years interest only.
“This property recently received $3 million in upgrades and is well positioned to compete with similar vintage product in this submarket with modest improvements to the unit interiors,” said Stanton.
Located at 3110 Grand Pavilion Drive, Grand Pavilion was built in 1984 and offers a mix of one- and two-bedroom units ranging in size from 540 square feet to 873 square feet. Apartments feature new carpet and plank flooring, a screened in patio or balcony, walk-in closets, and in some units, kitchens have been updated with new appliances, hardware and cabinetry. Community amenities include a new state-of-the-art fitness center, swimming pool with sundeck, outdoor picnic/grill area, tot lot/playground, bark park, clubhouse lounge, game room, and package receiving area.
The property is ideally located in Northeast Tampa, less than five minutes from the University of South Florida, Busch Gardens Tampa Bay and AdventHealth Tampa, and 20 minutes from downtown Tampa.
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.
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