MIAMI (April 10, 2018) – Berkadia has secured $32.515 million in permanent financing to take out a short-term construction loan used to build South Pointe Apartments, a 252-unit community built in 2017 in the Naranja section of southern Miami-Dade County. Senior Managing Director Charles Foschini, Managing Director Christopher Apone, Senior Director Jared Hill, and Senior Analyst Lourdes Carranza-Alvarez of Berkadia’s South Florida office arranged the loan on behalf of 137 Holdings, LLC.
Fannie Mae originated the 12-year loan with five years of interest only at a competitive rate. The loan takes out a $26.7 million construction loan provided by Ocean Bank when the project broke ground in 2015.
“Long-term holders in the market have recognized that, for the first time in many cycles, the cost between shorter-term fixed rate debt and long-term debt is extremely narrow,” explained Foschini. “We are increasingly asked to price 12-year money and longer for clients who recognize that the extended interest-only period and overall cost of capital produces a tangible benefit for the operation of the property and potentially the next buyer.”
“What was unique about this transaction is that the property is still in lease-up,” added Hill. “By utilizing Fannie Mae’s near-stabilization program, we were able to provide the borrower with long-term, permanent financing to best eliminate interest rate risk.”
Situated approximately 30 miles south of downtown Miami at 13720 SW 272 Street, South Pointe Apartments offers one-, two- and three-bedroom apartment units ranging from 740 square feet to 1,237 square feet, with rents starting at $1150 per month. Units include washer/dryer, oversized closet and air conditioning. Community amenities include a clubhouse, fitness center and trails for biking.