JV Lands $217M Recap in Florida

Freddie Mac and Related provided financing for a three-property portfolio.

The Venetian Apartments

The Venetian Apartments. Image courtesy of Berkadia

A joint venture of JSB Capital Group and BLD Group has recapitalized a three-property portfolio in central Florida. Freddie Mac provided a nearly $185.4 million fixed-rate 10-year loan at 60 percent loan-to-value for the assets, while Related Fund Management provided $31.8 million in preferred equity. A Berkadia team comprising Mitch Sinberg, Brad Williamson, Scott Wadler and Matthew Robbins arranged the financing.

The three-property portfolio consists of properties in Orlando and Fort Myers, Fla., totaling 1,139 units. The 300-unit 400 North property in Orlando was built in 2019 and offers one-, two- and three-bedroom units, ranging in size from 753 to 1,328 square feet. The units include full-size washers and dryers and a patio or balcony.

Elsewhere in Orlando, the M2 at Millenia was also completed in 2019, offering one-, two- and three-bedroom units, ranging from 698 to 2,214 square feet. The units were built with walk-in closets, ceiling fans, kitchen islands and full-size washers and dryers. In Fort Myers, the Venetian Apartments offers one-, two- and three-bedroom units, ranging from 708 to 1,268 square feet. The units were built with kitchen islands, bathroom vanities and walk-in closets.

Sinberg, senior managing director at Berkadia, said in prepared remarks that the recapitalization will preserve millions of dollars in cash flow for the owners. The portfolio averages approximately 94 percent occupancy rate across the three communities, none of which have any planned renovations since they were all completed recently.

Securing funding in Florida

This is not the first time JSB Capital Group and BLD Group have worked together. The companies, both of which have offices in Florida, are developing Wildwood Apartments, a 336-unit garden-style community in Wildwood, Fla. The joint venture broke ground on the project in March 2022 and is expecting to see first move-ins in late 2023.

JSB Capital Group also acquired the 631-unit Landmark South in Doral, Fla., for $255 million in December 2021. The company later secured a $219.9 million recapitalization for the community in May 2023, which was provided by Freddie Mac and Pensam.

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