South Pointe Apartments, a 252-unit community in Homestead, Fla. has received $32.5 million in permanent financing. Berkadia worked on behalf of 137 Holdings, an LLC controlled by Pride Homes, to obtain the Fannie Mae loan, which has a 12-year term and bears five years of interest only payments.
The property had a $26.9 million construction loan, originated in 2015 by Ocean Bank. The current loan was used to take out the previous one.
South Pointe Apartments is located at 13720 S.W. 272nd St., near the Ronald Reagan Turnpike and Homestead Air Reserve Base. Construction on the community’s nine buildings was completed last year, with the property still in the lease-up phase. The unit mix comprises 36 one-bedroom, 144 two-bedroom and 72 three-bedroom apartments ranging in size from 740 to 1,237 square feet. Common amenities include a fitness center, clubhouse and 396 parking spaces.
The community is approximately 30 miles from downtown Miami. Nearby thoroughfares include U.S. Highway 1 and Route 997. Multiple shopping and dining destinations are available a few minutes’ drive away at the junction of Biscayne Drive and 137th Avenue. Homestead offers multiple recreational activities, from boating to hiking and cycling.
“Long-term holders in the market have recognized that, for the first time in many cycles, the cost between shorter-term fixed rate debt and long-term debt is extremely narrow. We are increasingly asked to price 12-year money and longer for clients who recognize that the extended interest-only period and overall cost of capital produces a tangible benefit for the operation of the property and potentially the next buyer,” said Charles Foschini, senior managing director at Berkadia, in a prepared statement.
Image courtesy of Yardi Matrix