ATLANTA and IRVINE, Calif. – December 16, 2019 – Berkadia today announced the sale and financing for The Reserve and Friendly Hills Apartments, two garden-style multifamily properties in DeKalb, Georgia. Senior Managing Directors Paul Vetter and Andrew Mays, Senior Director Judy MacManus and Director Matt White of Berkadia’s Atlanta office completed $40.74 million in combined sales on behalf of their seller, Atlanta-based Benimax. The buyer of both properties was Texas-based Praxis Capital, who now owns 1,744 total units in the Atlanta area.
Managing Director Jackson Cloak of Berkadia’s Irvine, California office also secured $32 million in combined acquisition financing for both properties on behalf of Praxis Capital.
“The sales of The Reserve and Friendly Hills are a great example of the level of investor interest in value-add opportunities,” said MacManus. “The Buyer plans to update and improve the properties in order to better serve the residents, while also enhancing returns to the investors.”
“Combining the borrower’s proven track record and existing portfolio in the market with Berkadia’s long-standing relationship with the borrowers helped underwriters get aggressive on loan dollars, spreads, interest-only and other terms,” said Cloak.
The Reserve traded for $23.94 million, and Berkadia secured $19.76 million through Bridge Investment Group. The adjustable loan features a 75 percent loan-to-value ratio and a 30-year amortization. The deal closed on November 21.
Located at 5650 Hillandale Drive, The Reserve features studio, one-, two- and three-bedroom floor plans with central air and modern finishes. Community amenities include a swimming pool, a playground, a picnic area and a fitness center. The property affords convenient access to Interstate 20 and some of the area’s top employers, such as DeKalb Medical at Hillandale.
Friendly Hills Apartments traded for $16.8 million, and Freddie Mac provided $12.3 million in financing for the acquisition. The adjustable 10-year loan features a 75 percent loan-to-value ratio with initial interest-only. The deal closed on November 19.
Friendly Hills Apartments, located at 10 Friendly Hills Drive, features two- and three-bedroom floor plans with fully equipped kitchens, large closets and in-unit patios and balconies. Community amenities include a basketball court, laundry facilities, a swimming pool and a playground. The property affords convenient access to The Mall at Stonecrest, The Gallery at South DeKalb, Interstate 20 and some of the area’s top employers, such as DeKalb Medical.