One Real Estate Investment (OREI) acquired Whitney Manor and Westchase Apartments, 579 units in total, for a combined $45.7 million
New Orleans (September 23, 2020) – Berkadia announces it has secured debt and sourced an equity partner for the acquisition of a multifamily portfolio consisting of two properties in New Orleans, Louisiana, totaling 579 units. One Real Estate Investment (OREI) acquired the 199-unit Whitney Manor and 380-unit Westchase Apartments, both located approximately three miles apart in Jefferson Parish, for a combined $45.7 million. Berkadia lined up $34.19 million in debt and $11.2 million in equity on behalf of OREI to complete the acquisition.
Senior Managing Director Mitch Sinberg and Managing Director Brad Williamson of Berkadia’s South Florida offices arranged the loans through Freddie Mac’s Green Advantage Program. Berkadia’s Joint Venture Equity and Structured Capital Group in New York, led by Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick, sourced an equity partner. This is the third time this year that Berkadia has arranged both debt and equity to assist OREI with the expansion of its multifamily portfolio in the Southeast and Texas
Berkadia originated a $23.29 million loan on the $31.06 million purchase of Westchase Apartments. The 10-year, fixed-rate loan includes four years interest only. Whitney Manor, which OREI purchased for $14.63 million, received a $10.9 million, 10-year fixed-rate loan, with three years interest only.
“The incredible location and high occupancy at these two assets, along with the fact that there has been no workforce multifamily development in this market in over a decade, presented OREI with a compelling value-add opportunity,” said Williamson.
“Our firm has a lot of confidence in OREI’s ability to source intriguing opportunities and we were excited to work on finding them an institutional equity partner that would understand the market dynamics in New Orleans,” added Franklin.
Jeronimo Hirschfeld, President and CEO of OREI, added, “New Orleans is a strategic market for OREI, as we complete our coverage of the majority of 18-hour cities in Texas and the Southeast. These two opportunities not only provide OREI a strong footprint in an exciting market experiencing newly renovated growth, but also have the ability to deliver strong cash-on-cash and total returns to our investment partners.”
Located at 1117 Whitney Avenue, Whitney Manor is a two-story, garden-style apartment property built in 1975 with one-, two-, and three-bedroom units ranging from 700 square feet to 1,200 square feet. Cable-ready units feature air conditioning, carpet, ceiling fans, dishwasher, heating, range, refrigerator, tile floors, mini blinds, balcony/patio, and window coverings. The property offers 200 surface parking lots.
Located at 1013 Manhattan Boulevard, Westchase Apartments is a two- and three-story garden-style apartment community built in 1975 offering one- and two-bedroom floor plans ranging from 858 square feet to 1,192 square feet. Unit amenities include central/air heating, black appliances, carpet, dishwasher, high speed internet access, fully equipped kitchen with microwave, walk-in closets, wheelchair accessible (rooms), and ceramic tiled bathrooms, entryways, kitchens, & shower walls. Select units have ceiling fans, expanded bathroom vanities, kitchen breakfast bar, private balcony/patio, and a washer/dryer. Community amenities include s two-story community room, two swimming pools, two laundry facilities, modern stucco exterior, breakfast/coffee concierge, courtyard, fitness center, and a business center. The property offers 425 surface parking spaces.
Whitney Manor and Westchase Apartments are located approximately 7 miles from New Orleans’ French Quarter, less than 10 miles from Loyola University, Tulane University and Louisiana State University, and less than five miles from West Jefferson Medical Center. Louis Armstrong New Orleans International Airport is 20 miles from the property.