Berkadia Arranges $217M Debt & Equity Recapitalization of Three-Property Multifamily Portfolio in Central Florida
Related Fund Management provided $32 million in preferred equity behind a $185 million senior loan from Freddie Mac
ORLANDO (July 19, 2023) – Berkadia announces it has arranged debt and equity financing totaling $217 million for the recapitalization of a three-property, 1,139-unit multifamily portfolio consisting of properties in Orlando and Fort Myers, Florida. Senior Managing Director Mitch Sinberg, along with Managing Directors Brad Williamson, Scott Wadler and Matthew Robbins of Berkadia South Florida, secured the financing on behalf of the joint venture between JSB Capital Group, a real estate investment company with offices in Miami Beach, and BLD Group, a real estate operating company with divisions specializing in multifamily rental apartment development, asset management and general construction with offices in Florida and Colorado.
Freddie Mac provided a $185.35 million, fixed-rate loan with a 10-year term at a 60 percent loan-to-value. Related Fund Management provided $31.8 million in preferred equity.
“As challenging as the capital markets currently are, this demonstrates that liquidity is still available for credible and quality sponsors,” said Sinberg. “We successfully replaced a debt fund loan whose floating-rate skyrocketed from the mid two percent range to the mid seven percent range to a much more palatable fixed-rate agency loan with preferred equity behind it. This will preserve millions of dollars of cash flow for the client and secure their success for the project going forward.”
The properties in the portfolio are:
400 North – Built in 2019 and located at 400 North Orlando Avenue in the Maitland submarket of Orlando, 400 North is a 300-unit luxury apartment mid-rise community with one-, two- and three-bedroom apartments ranging from 753 square feet to 1,328 square feet. Units include wood-inspired plank flooring, an eat-in kitchen countertop seating bar, linen closets, ceiling fans with lights, brushed nickel accents, custom window blinds, full-size washer and dryers, and French doors leading to patio or balcony.
M2 at Millenia – Located at 4206 Eastgate Drive in Orlando and built in 2019, M2 at Millenia offers one- two-, and three-bedroom apartments ranging from 698 square feet to 2,214 square feet. Individual units offer walk-in closets, vinyl flooring, modern light cabinetry, ceiling fans with lighting, faux-wood blinds, island kitchens and full-size in-home washer and dryers. Community amenities include a pool, fitness center, community clubhouse, bicycle storage, an outdoor grilling area, a business center, gaming room and entertainment lounge with a kitchen and bar.
Venetian Apartments –Located at 4051 Regata Way in Fort Myers, Venetian Apartments offers one-, two-, and three-bedroom apartments that range from 706 to 1,268 square feet. Individual units offer pre-wire high-speed fiber internet, stainless steel appliances, kitchen islands, volume ceilings, wood-like vinyl flooring, bathroom vanities, and walk-in closets.