Dealmaker: Berkadia Completes $37M in Multifamily Transactions
Berkadia closed two multifamily transactions totaling $37 million in Alabama.
In Birmingham, Ala., Senior Managing Director David Oakley, Senior Director David Wilson and Associate Directors Caleb Frizzell and Jay Briley from the firm’s Birmingham office sold The Park at Sunderland, a 268-unit Class B garden-style apartment property.
Magma Residential, Tampa, Fla., sold the property to Vazza Real Estate Group, Boston, for $20.1 million. The deal closed on September 26.
“Sunderland is the definition of workforce housing, making this an attractive property for the buyer,” said Oakley. “Rents in the Birmingham core metro area continue to grow at an accelerated pace given job growth and housing demand, which bodes well for communities like Sunderland that are just outside the city center.”
Metro Birmingham has seen a 70-basis-point annual occupancy increase to 94.8 percent in second-quarter 2019. Greater Birmingham effective rents advanced 3.9 percent on average since mid-2018 to $955 per month in June, Berkadia said.
In Dothan, Ala., Berkadia secured $16.9 million in financing for mid-rise multifamily property Magnolia Preserve. Director Josh Finley of Berkadia’s Atlanta office secured the permanent refinancing for Henssler Capital, Kennesaw, Ga.
The 10-year Fannie Mae loan closed Sept. 27 at a 3.76 percent interest rate and a 75 percent loan-to-value ratio with four years of interest-only payments. Finley said Magnolia Preserve realized more than nine percent year-over-year net operating income growth over the last three years by upgrades to 10 percent of the units and said Henssler plans to continue with focused upgrades.