Advenir will rehab The Fountains, a 542-unit community in Palm Beach Gardens
Palm Beach Gardens, Fla. (February 8, 2018) – Berkadia has secured an $80 million value-add loan for the rehabilitation of The Fountains, a 542-unit multifamily community located in a premiere section of Palm Beach County. Berkadia South Florida Senior Managing Directors Charles Foschini and Mitch Sinberg, along with Managing Director Chris Apone, Associate Director Matt Robbins, and Senior Analyst Lourdes Carranza-Alvarez, arranged the transaction on behalf of the buyer, Advenir at PGA LLC. Advenir acquired the property from Landmark at Garden Square LLC for $97,250,000.
Freddie Mac originated the three-year, floating rate loan, with a competitive spread over LIBOR, and a LTV ratio of 82 percent. The loan will be used for substantial renovation of individual apartment units on the property, which was built in 1974 and last updated in 2009.
“The buyer Advenir is among the most successful Florida-based owners of multifamily assets,” said Foschini. “They bring a unique approach to every deal and as such qualified for Freddie Mac’s value-add program, which requires a substantive investment in both the interior and exterior of the space in exchange for a low rate and higher level of proceeds.”
“This deal exemplifies the strength of the platform,” suggested Sinberg.”The seller was undecided whether to sell the asset or refinance. By working collaboratively, we were able to provide information and options between our two offices to generate an exceptional execution for the buyer/borrower which in turn made the deal for the selling entity.”
Located at 4120 Union Square Boulevard, The Fountains maintains a premier location for apartment homes in Palm Beach County, with drive-by visibility off of Military Trail and close proximity to major employers, shopping centers, and entertainment destinations. The property’s stylish one-, two- and three- bedroom apartments feature in-home washer/dryers, ceramic tile flooring, modern white cabinetry with brushed nickel knobs, white appliance packages, breakfast bars, large walk-in closets and storage, oversized master bedrooms, and large screened in patio/balconies with Saltillo tile flooring. Amenities include three resort style swimming pools with new designer lounge furniture, summer kitchen with grilling station, newly designed clubhouse, 24-hr state of the art fitness center, basketball courts, fitness trail, large new bark park, putting green, picnic area with BBQ grills, car wash area and Wi-Fi in public areas.