MLG Capital provided $17.5 million in JV equity for the acquisition of Wildcreek Apartments in Clarkston, Ga.

Berkadia announces it has secured a JV equity partner for the off-market acquisition of Wildcreek Apartments, a 242-unit Class B apartment community located in Clarkston, Ga. Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick of Berkadia JV Equity & Structured Capital lined up the equity partner, MLG Capital, on behalf of Miami-based One Real Estate Investment (OREI). MLG contributed $17.5 million in equity toward the $34 million acquisition as the property was purchased with a loan assumption.

Situated in Dekalb County, just 18 miles west of downtown Atlanta, Wildcreek is 97 percent occupied. OREI intends to implement an interior and exterior value-add program, including adding stainless-steel appliances, updated lighting fixtures, resurfaced countertops, backsplashes, new cabinet fronts, and vinyl flooring, and also make exterior upgrades such as roof repair/replacement, fitness center renovation, addition of Amazon Lockers, exterior lighting, and new signage/rebranding.

“Our team prides itself on introducing like-minded sponsors and capital partners when arranging programmatic relationships. In today’s acquisition market, sponsors need to move quickly, and having a reliable capital partner is paramount. Wildcreek is the fourth acquisition for the partnership between OREI and MLG, and they plan to be active together in 2022 and beyond,” said Kirkpatrick.

“OREI remains bullish on the Atlanta MSA with Wildcreek Apartments serving as our team’s third acquisition in the metro in 2021,” added Jeronimo Hirschfeld, CEO of OREI. “The Southeast Dekalb submarket’s demonstrated rent growth and a lack of upcoming new supply prompted OREI’s interest in Wildcreek and align closely with our team’s value-add investment strategy for the asset.”

Built in 1988, Wildcreek Apartments is located at 100 Wild Circle and offers one- and two-bedroom units ranging from 850 to 1,100 square feet, along with a resort-style pool, fitness center, playground, tennis court, walking/biking trails and approximately 300 parking spaces. The property is conveniently situated near the U.S. 78 and I-285 interchange, placing downtown Atlanta just 20 minutes away.

ATLANTA (October 13, 2021) -- Berkadia announces it has secured debt for the refinance of The Carter @ 4250, a 300-unit apartment community located in Norcross, Georgia, on behalf of Miami-based One Real Estate Investment (OREI). In addition, Berkadia also sourced a capital group to recapitalize the sponsor’s equity partner.  

Senior Managing Director Mitch Sinberg of Berkadia Boca Raton and Managing Director Brad Williamson of Berkadia Miami arranged a $33.12 loan through Freddie Mac. Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick of Berkadia JV Equity & Structured Capital lined up an equity partner, MLG Capital, to complete the equity stack for OREI.

Freddie Mac provided a 10-year, floating-rate loan with a competitive rate and five years of interest-only. MLG Capital contributed $16.55 million in equity to the deal. 

“The Carter underwent an extensive value-add program by OREI prior to its recapitalization,” said Williamson. “We are excited to see OREI continue its plan and create value at the property for both the tenants and the new equity partner.”

“OREI has continued to grow its multifamily portfolio and is now over 5,000 units in Texas and the Southeast,” said Jeronimo Hirschfeld, CEO of One Real Estate Investment CEO. “In an effort to capitalize on this dynamic market and deliver superior returns to our investors while still maintaining our portfolio, we opted to recapitalize a strong performing asset in an excellent submarket of Atlanta.”

Berkadia has arranged debt and equity for OREI’s multifamily portfolio expansion several times over the past two years.

Built in 1985, The Carter 4250 is located at 4250 Jimmy Carter Boulevard and offers one- and two-bedroom apartments ranging from 707 square feet to 1,052 square feet. Individual units feature hardwood-style flooring, stainless steel appliances, a gas range, modern shaker-style cabinetry, large closets, carpeting, electronic thermostats, washer and dryer hookups and patio/balconies. Community amenities include a saltwater swimming pool, a fitness center with free weights, a playground, dog park, laundry center and a BBQ/Picnic area.

It is situated near Interstate I-85 and Jimmy Carter Boulevard providing quick access to downtown Atlanta , minutes away from the Fountain of Gwinnett, Lions Club Park and a half hour away from the Hartsfield-Jackson Atlanta International Airport.

Continental Realty Group through its subsidiary Continental Realty Assets, Ltd. ("CRA"), a Denver-based multi-family investment firm in partnership with MLG Capital (“MLG”), has completed the disposition of The Park at Forest Hill in Memphis, Tenn. The sale price was $64 million.

Located in the Germantown/Southwind submarket of Memphis, the 601-unit community was developed in two phases in 2002 and 2007. The property directly benefits from its proximity to high-profile corporate centers, a beautiful country club environment and an exemplary school district.

“Our definition of a successful investment is one that results in a positive impact for residents while generating strong returns,” said David Snyder, founder & CEO of Continental Realty Group. “This transaction validates the investment thesis of our ‘Vital Portfolio,’ which calls for finding properties in quality locations with fundamental demand factors that allow us to enhance the community while striving to keep rents at an affordable level. We are proud of what we were able to accomplish for both the community and our investors during the holding period.”

“We greatly value our relationship with CRA,” said Timothy J. Wallen, principal and chief executive officer of MLG Capital. “This was a very successful partnership, and we hope we can do more together in the future.”

CRA and MLG purchased the property in 2016 for $39.1 million and undertook a light value-add and rebranding strategy, which included renaming the property from Greens at Irene to Park at Forest Hill. The business plan primarily focused on improving the common areas and amenities while also upgrading select units with items such as new vinyl plank flooring, stainless steel appliance package, kitchen and bathroom cabinet fronts, and all new unit hardware.

“Our asset management team directed over $3.1 million to the improvement of the physical property with a single goal in mind, creating a sense of community. Families and individuals now have both indoor and outdoor multipurpose spaces to gather depending on their needs. We took a property of 50 buildings and created a vibrant neighborhood,” said Snyder.