Dealmaker: JLL Arranges $220M Multifamily Recapitalization

(Landmark South, a 631-unit mid-rise multifamily community in Doral, Fla.)

JLL Capital Markets, Chicago, arranged $219.9 million to recapitalize Landmark South, a 631-unit mid-rise multifamily community in Doral, Fla.

JLL represented borrower JSB Capital Group, Miami Beach, Fla., and secured a five-year, $154.1 million senior loan through Freddie Mac Multifamily, McLEan, Va. The loan will be serviced by JLL Real Estate Capital LLC., a Freddie Mac Optigo lender. JLL simultaneously arranged a $65.8 million preferred equity investment from Pensam, Miami.

Built at 6055 NW 105th Ct. across two phases in 2017 and 2021, Landmark South’s units exceed 1,000 square feet on average and include terraces, stainless steel appliances, in-unit washers and dryers, and walk-in closets.

The JLL Capital Markets Advisory team was led by Senior Director Jesse Wright, Managing Director Brian Gaswirth, Managing Director Maurice Habif, Senior Director Simon Banke and Senior Director Ted Taylor.

Wright and Gaswirth said the borrower took advantage of a highly competitive preferred equity market alongside senior financing from Freddie Mac to significantly lower its cost of capital on this Class A asset.

Hen Shoval, Director of Investments at Pensam, noted the current interest rate environment is leading to compressed senior loan proceeds, “which in turn is creating funding gaps that can be addressed with Pensam’s preferred equity or mezzanine debt.”