Berkadia Secures $40.5 Million Loan for Georgia Apartments

August 27, 2020

Berkadia Secures $40.5 Million Loan for Georgia Apartments

August 27, 2020

A joint venture between Beacon Real Estate Group and Constellation Group acquired the 266-unit 53 West apartments for $53.2 million

ATLANTA (August 27, 2020) – Berkadia announces it has helped structure a joint venture and sourced long-term financing for the acquisition of 53 West, a brand new, 266-unit Class A multifamily asset located in Oakwood, a rapidly growing suburb located roughly 45 miles northeast of Atlanta, Georgia.  Senior Managing Director Mitch Sinberg, Managing Director Scott Wadler, and Senior Director Matt Nihan of Berkadia’s South Florida team arranged the financing on behalf of a joint venture between Beacon Real Estate Group and Constellation Group, both of Miami, Florida. The JV acquired the apartments for $53.2 million.

Berkadia originated and Freddie Mac purchased a $40.5 million, fixed-rate loan with a 15-year term, and a significant interest only period, at a 75% loan to value.

“We are excited to see two local (Miami) groups come together on their first, of hopefully many, joint ventures,” said Wadler. “Beacon and Constellations vision for this investment aligned perfectly, supported by the submarket’s strong population growth and the property’s successful lease-up since its mid-2019 delivery.”

Beacon has ownership interest in more than 6,000 multifamily units in the Southeast U.S., with a strong focus on secondary markets. The company’s portfolio also includes nearly 1 million square feet of office and retail properties in the region.

“Beacon is able to get ahead of trends by looking at property in the context of the underlying demand drivers and competitive product – short term fluctuations do not deter us,” said Carlos E. Imery, Managing Partner of Beacon Real Estate Group.

Constellation Group is a commercial real estate investment firm offering a family office approach to real estate investments across various asset classes. Specializing in multifamily, office and retail assets throughout southeastern United States, Constellation Group seeks to fulfill efficient yield driven strategies for investors.

“We are very excited to engage in this joint-venture with Beacon Real Estate Group and add this asset to our portfolio,” said Constellation Group principal Eduardo I. Otaola. “The consideration of strong market fundamentals in Northern Georgia and the quality of the newly built asset were core reasons for this acquisition.”

Built in 2019 and located at 1000 Wood Acres Road, 53 West consists of 10 three-story garden style residential buildings, a clubhouse/pool pavilion, and 476 parking spaces. One-, two- and three-bedroom floor plans range in size from 855 square feet to 1,335 square feet. Unit interiors boast high-end features and finishes including nine-foot ceilings, fully equipped kitchens with 3-inch quartz countertops and stainless steel appliances, luxury vinyl plan flooring, LED ceiling fans and lighting, USB charging ports, walk-in closets, SMART programmable thermostats, and a patio or balcony. Community amenities include an 8,000-square foot clubhouse, car wash and maintenance center, coffee/tea bar, dog park and play area, outdoor fireplace and lounge, outdoor kitchen and barbecue area, ping pong table, resident business center, resort-style pool and waterfall, and plentiful open green space with walking trails.

53 West is ideally situated just a few minutes from I-985, and close to many major employment centers including the area’s largest employer, the Northeast Georgia Health System/Northeast Georgia Medical Center, Mall of Georgia, Atlanta Falcons Training Camp, University of North Georgia – Gainesville Campus, Chateau Elan Winery & Resort, and a new Amazon logistics center.

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Beacon Real Estate Acquires Multifamily Community Near Atlanta for $53.2M | REBusiness Online

Berkadia Secures $40.5M Loan for Georgia Apartments | CityBizList

Beacon Real Estate Acquires Gainesville Apartment Property for $53M | Connect Media

Berkadia Secures $40.5 Million Loan for Georgia | Multifamily Press

Berkadia Secures $40.5 Million in Financing for 266-Unit 53 West Apartment Community in Rapidly Growing Atlanta Suburb | MultifamilyBiz