Dealmaker: Berkadia Arranges $250M for Multifamily
Berkadia, New York, arranged nearly $250 million in financing for multifamily properties in five states.
In Georgia, Berkadia arranged sale of Bristol Creek and The Reserve, two garden-style multifamily properties. Senior Director Judy MacManus, Senior Managing Directors Andrew Mays and Paul Vetter and Director Matt White of Berkadia Atlanta completed the transaction on behalf of the seller, California-based Praxis Capital. The deal closed on October 29.
“Bristol Creek and The Reserve were well occupied, stable assets,” MacManus said. “The seller had proven out a value-add program having updated approximately 52 percent of the units. The buyer plans to continue the success by completing the renovation plan.”
Bristol Creek is located at 10 Friendly Hills Drive in Decatur. The 168-unit garden-style multifamily property features one-, two- and three-bedroom floor plans with private patios or balconies. Community amenities include pet stations, a playground, a swimming pool and a basketball court.
The Reserve is a 252-unit garden-style multifamily property located at 5650 Hillandale Drive in Lithonia. The property features one-, two- and three-bedroom floor plans with private patios or balconies. Community amenities include pet stations, a playground, a fitness center, grilling stations, a swimming pool and a clubhouse.
Both properties afford residents convenient access to Interstates 285 and 20, downtown Atlanta and the shops and restaurants along Wesley Chapel Road and Panola Road.
In Missouri, Berkadia arranged financing for Flashcube, a 184-unit high-rise multifamily property in Kansas City. Managing Director John J. Schorgl of Berkadia Kansas City secured $35 million in refinancing on behalf of the borrower, Missouri-based Worcester Investments. The deal closed on November 12.
The two-year bridge loan financed through Berkadia features a floating interest rate and is interest only. “This bridge loan was a perfect fit as it allowed the asset to continue to stabilize and cut the borrower’s current debt service in half,” Schorgl said.
Located at 720 Main St., Flashcube features studio, one-, two- and three-bedroom floor plans with in-unit washers and dryers, walk-in closets and air conditioning. Community amenities include a fitness center, a dog park, a tennis court and a lounge. Residents are afforded convenient access to the Missouri River, downtown Kansas City and Interstate 70.
In Illinois, Berkadia arranged financing secured for Park Heights at the Lake, a 106-unit high-rise multifamily property in Chicago. Managing Director Jason Brown and Senior Real Estate Analyst Austin Katai of Berkadia Indianapolis secured the $22.575 million in permanent refinancing on behalf of the borrower, Indianapolis-based Zidan Management Group. The deal closed on October 28.
The Freddie Mac loan provided cash out to the borrower after completing a full renovation and repositioning of the property.
“Our client acquired the former Shoreline Apartments, a distressed multifamily deal in the South Shore neighborhood and successfully completed a gut rehab and renovation of this historic property,” Brown said. “With this Freddie Mac refinance, Zidan was able to recoup much of their equity in the deal with an aggressive interest rate and structure.”
Located at 2231 E 67th St., Park Heights at the Lake features studio, one- and two-bedroom and penthouse floor plans with renovated kitchens and in-unit washers and dryers. Community amenities include a fitness center, a skydeck and a residential lounge. The property affords residents convenient access to University of Chicago, Sixty-Seventh Street Beach and downtown Chicago.
In South Carolina, Berkadia arranged the $76 million sale of West Ashley Portfolio, a three-property multifamily portfolio in Charleston. Senior Managing Directors Paul Vetter and Andrew Mays of Berkadia Atlanta and Managing Director Mark Boyce and Director Blake Coffey of Berkadia Charleston completed the sale on behalf of the seller, Georgia-based Radco Companies. The buyer was BFG Investments, also based in Georgia, and the deal closed on November 1.
“This portfolio was very well located inside the continuously growing West Ashley sub-market of Charleston,” Boyce said. “The three assets have undergone renovations and the buyer will be able to continue with those improvements moving forward.”
The three properties within this portfolio include: Ashford Palmetto Square at 1551 Sam Rittenberg Blvd. The 139-unit property features one- and two-bedroom floor plans with ceiling fans and large closets. Community amenities include a swimming pool, a dog park, laundry facilities and barbeque picnic area.
Ashford Riverview is located at 1476 Orange Grove Road. The 161-unit property features one, two- and three-bedroom floor plans with dishwashers, ceiling fans and large closets. Community amenities include a swimming pool, a fitness center, a business center, laundry facilities, a dog park and a barbeque picnic area.
Radius at West Ashley is located at 2040 Ashley River Road. The 198-unit property features one, two- and three-bedroom floor plans. Community amenities include a swimming pool, a fitness center, a business center, laundry facilities and a barbecue picnic area.
All three properties afford residents convenient access to Citadel Mall, West Ashley Park and the shops and restaurants along Route 7, Route 61 and Savannah Highway.
In Nevada, Berkadia arranged the $113.5 million sale of Wynn Palms, a 555-unit garden-style multifamily property in Las Vegas. Director Jared Glover of Berkadia Las Vegas completed the sale on behalf of the buyer, California-based Tides Equities. The seller was 3D Investments LLC, also based in California, and the deal closed on November 16.
“The acquisition of Wynn Palms allows Tides to continue building scale around both Chinatown and the resort corridor, capitalizing on record job growth and overall economic recovery in the market,” Glover said. “They plan to implement a strong value-add program, modernizing the units while adding a premier amenity set to the property as a whole.”
Located at 3800 Wynn Road, Wynn Palms features one- and two-bedroom floor plans with walk-in closets and air conditioning. Community amenities include three swimming pools, six laundry facilities and a playground. The property affords residents convenient access to the Las Vegas Strip, McCarran International Airport and the shops and restaurants along W. Flamingo Road.