By Jeffrey Steele
Berkadia has secured $98.92 million in financing on behalf of Aventura, Fla.-based real estate investment company Advenir. The financing is for the acquisition of two large South Florida multifamily properties, Crown Pointe in Broward County, and Gateway Lakes in Sarasota. These transactions represent two of Advenir’s largest Florida transactions yet.
Built in 1986, Crown Pointe is a 360-unit rental community at 4142 Cocoplum Circle in the town of Coconut Creek. One- through three-bedroom units offer vinyl wood flooring, vaulted ceilings, dishwashers, new plumbing and electrical fixtures and stainless-steel appliances. Amenities include a clubhouse, fitness center, two swimming pools with spa, and a 625-seat performing arts center. Advenir acquired the property from Wood Partners on October 5th with a $52.32 million loan secured through Freddie Mac. The loan has a seven-year term, with three years of interest only, an aggressive rate and a loan-to-value (LTV) of 80 percent.
Built in 1996, Gateway Lakes is a 358-unit apartment community at 1000 Marlin Lakes Circle in Sarasota. One- to three-bedroom units feature stainless steel appliances, faux wood flooring throughout, and upgraded kitchen countertops, cabinets and hardware. Among the amenities are a newly redesigned clubhouse, 24-hour state-of-the-art fitness center, pool area with sundeck and high-speed Internet. It was acquired from the same seller on the same day. The asset is backed by a $46.6 million loan, also through Freddie Mac, seven-year term with three years interest only, a competitive interest rate, and an LTV of 80 percent.
Locked rate secured
“One of the most challenging aspects of these two transactions was getting the newer asset, Gateway Lakes, to quality for Freddie Mac’s Green Up program, which typically favors vintage assets,” senior managing director Charles Foschini of Berkadia’s Miami office told MHN. “We had to demonstrate that the borrower could add substantive value through energy-saving improvements, even though the property was built in the 1990s. Another challenge we faced was interest rate movement. We overcame this by securing a locked rate for the borrower at application so they were immune to market volatility.”
Added managing director Christopher Apone, also of Berkadia’s Miami office, “Advenir is a phenomenal operator and has a great eye for value-add assets. Though we had Hurricane Irma and some interest-rate turbulence during the loan process, the borrower never flinched. Offering an index lock early in their due diligence allowed us to preserve an exceptional rate for the life of their hold period.”