Dealmaker: Berkadia Arranges $93 Million for Multifamily
Berkadia, New York, arranged $93 million in financing for multifamily properties in Georgia and Arizona.
In Decatur, Ga., Berkadia secured debt for acquisition of two apartment communities. Beacon Real Estate Group, of Coral Gables, Fla., acquired the 168-unit Domain at Cedar Creek and 164-unit Gateway at Cedar Brook apartments for a combined $46.1 million.
Managing Director Scott Wadler, Senior Managing Director Mitch Sinberg and Senior Director Matt Nihan of Berkadia’s South Florida team arranged financing through Fannie Mae, which provided a $19.16 million loan for Domain at Cedar Creek and $16.01 million in financing for Gateway at Cedar Brook. Both were fixed-rate, 15-year loans, with nine years interest only, at 75% loan to value.
“Beacon’s strong track record coupled with favorable debt market dynamics allowed us to secure these 15-year loans at an aggressive rate below 3 percent,” Sinberg said. “Proceeds from the loan will be used to undertake a strategic property and unit repositioning.”
“The properties are being acquired during an extremely opportune window,” Wadler said. “Beacon was able to purchase the two-property portfolio at a cap rate slightly above market as a result of COVID disruption and simultaneously capitalize on a treasury yields that compressed over the last 90 days to ‘floor’ pricing.”
Beacon owns 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.
Built in 1970 and 1972, respectively, Domain at Cedar Creek and Gateway at Cedar Brook are considered sister communities and are located within one mile from each other. The previous owner made substantial recent investments to upgrade roofs, siding, HVAC systems and clubhouses at the communities. Both properties are 99% occupied. Beacon plans to add value through extensive interior renovations.
Located at 3073 Cedar Creek Parkway, Domain at Cedar Creek offers one-, two- and three-bedroom apartments ranging in size from 750 square feet to 1,350 square feet. Apartments feature spacious open layouts, walk-in closets, washer/dryer and patios or balconies. Amenities in the gated, pet-friendly community include two pools with a sundeck, a lighted tennis court, fitness center, playground, package service, laundry facility and sand volleyball court.
Located at 3117 Cedar Brook Drive, Gateway at Cedar Brook also offers one-, two- and three-bedroom apartments ranging in size from 750 square feet to 1,350 square feet. Community amenities include a 24-hour fitness center, two pools, a playground and it is located on a MARTA Busline.
In Arizona, Berkadia arranged $16.2 million for Villa de Paz, a garden-style multifamily property totaling 120-units in Phoenix. Senior Managing Director Ric Holway, Senior Director Dan Cheyne and Senior Managing Director Mark Forrester of Berkadia’s Phoenix office completed the sale on behalf of the seller, California-based Prado Revocable Living Trust. The buyer was Tides Equities, also based in California; the deal closed on July 24.
The buyer plans on renovating the exterior and interior of the community.
Located at 4405 N 103rd Ave., Villa de Paz offers one- and two-bedroom floor plans in a private garden-style site plan with large open courtyards with mature shade trees. Residents are afforded convenient access to Loop 101, Westgate entertainment district, University of Phoenix Stadium, Camelback Ranch and neighborhood shops and restaurants along W. Indian School Road.
Berkadia also secured sale and financing for Tides on Thomas, a garden-style multifamily property totaling 187-units in Phoenix. Senior Managing Director Ric Holway, Senior Director Dan Cheyne and Senior Managing Director Mark Forrester of Berkadia’s Phoenix office completed the $24.5 million sale on behalf of the seller, California-based Tides Equities. The deal closed on July 31.
Managing Director Lucas Donahue, also of Berkadia’s Phoenix office, secured $17.8 million in financing for acquisition of the property on behalf of the buyer, an undisclosed entity. The 10-year Freddie Mac loan features a 70 percent loan-to-value ratio and a five-year interest only period.
Located at 4815 E Thomas Road, Tides on Thomas features studio, one- and two-bedroom floor plans with new flooring and central air conditioning. Community amenities include three swimming pools, a spacious outdoor area with barbecue stations, laundry facilities, a basketball court and assigned covered parking. Residents are afforded convenient access to Scottsdale, Sky Harbor, Camelback Corridor and neighborhood shopping.