Berkadia Arranges Equity Recapitalization For Six-Property Multifamily Portfolio

May 14, 2020

Berkadia Arranges Equity Recapitalization For Six-Property Multifamily Portfolio

May 14, 2020

The portfolio includes 1,217 workforce housing units in Florida and Georgia 

NEW YORK (May 18, 2020) – Berkadia today announced that it has arranged an equity recapitalization for a $138 million, 1,217-unit multifamily portfolio comprising six properties in Florida and Georgia. Berkadia’s Joint Venture Equity and Structured Capital Group, led by Noam Franklin, Chinmay Bhatt and Cody Kirkpatrick, sourced the new equity investment from a publicly traded REIT on behalf of Strategic Holdings, a vertically integrated real estate platform based out of Westlake Village, California.

The equity investment comes behind senior Fannie Mae/Freddie Mac loans on each property and gives Strategic Holdings ample capital to target new acquisitions throughout the Southeastern United States. Jeremy Lynch, Director of Mortgage Banking in Berkadia’s Philadelphia office, originated four of the six agency loans in the portfolio.

“Strategic Holdings was looking for a new equity partner that would recognize the value that they had already created with additional upside still remaining,” said Noam Franklin, Managing Director and Head of Eastern US for Berkadia’s JV Equity & Structured Capital Group. “The high caliber of the sponsor combined with the Sunbelt location of the properties in the portfolio allowed our team to generate a lot of interest in this portfolio immediately. Strategic Holdings ultimately decided on a publicly traded REIT that understood its long-term vision.”

Brian Alonge, Chief Financial Officer of Strategic Holdings, added “We trusted Berkadia’s JV Equity & Structured Capital Group to identify the right capital partner that would deliver the terms we were looking for. We are excited to further enhance these properties while having fresh capital for new acquisitions as we move forward.”

Strategic Holdings acquired the six properties in the portfolio between 2016 and 2019. The properties are:

  • Belmont Crossing – Smyrna, GA, 192 units, 1964 vintage
  • Park on the Square – Pensacola, FL, 240 units, 1999 vintage
  • Sierra Terrace – Atlanta, GA, 135 units, 1968 vintage
  • Sierra Village – Atlanta, GA, 154 units, 1973 vintage
  • The Commons – Jacksonville, FL, 328 units, 1975 vintage
  • Georgetown Crossing – Savannah, GA, 168 units, 1994 vintage

Berkadia Arranges Equity Recap for $138 Florida and Georgia MF Portfolio | Connect Media

Berkadia Arranges Equity Recap for Six-Property Multifamily Portfolio | Multifamily Press

Berkadia Arranges $22M in Equity for Six-Property Multifamily Portfolio in Georgia, Florida | REBusiness Online

Strategic Holdings Recapitalizes Southeastern U.S. Portfolio | Multi-Housing News 

Bluerock Residential Makes $22Mln Preferred Investment in Fla., Ga. Apartments | Commercial Real Estate Direct