Lakeland, Fla. (December 18, 2018) – Berkadia has arranged the refinancing of Fountain Square Apartments, a 148-unit garden-style apartment community located in Lakeland, Florida. Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia’s South Florida office represented the borrower, Pensam Capital, in securing the loan.
Freddie Mac provided a 12-year, fixed rate loan for $11.6 million, with full-term interest only. This represents a 65 percent loan to value.
“Our client Pensam Capital has always been a strong operator, but in this case, they also proved to be an exceptional market timer,” explained Foschini. “Working together with Freddie Mac we were able to put them in a position to index lock ahead of the interest rate volatility that now pervades the capital markets. With a long-term approach to ownership on this asset, we were able to return capital to the investors and assure a continued return for many years to come with this interest-only loan. “
Built in two phases between 1972 and 1975, Fountain Square Apartments consists of one-, two- and three-bedroom apartments in nine two-story residential buildings, 233 parking spaces, and a clubhouse set on eight acres of land. Average unit sizes is 1,041 square feet and include ceramic or vinyl tile floors, screened patios/balconies, utility rooms, fully equipped kitchens and full-size washer and dryer connections. Property amenities include a laundry facility in the clubhouse, two swimming pools, a playground, picnic areas, outdoor kitchens and a gazebo.
The community is conveniently located in the Cleveland Heights neighborhood of Lakeland, close to Lakeland Yacht & Country Club, Lakeside Village Mall, Southgate Publix, Common Ground Park, and Lake Hollingsworth.