Newly Built FL Community Lands $43M Refi
The new loan assumes part of the original construction loan and provides additional financing to cover the stabilization of the property. Berkadia arranged the deal on behalf of the borrower.
By Timea Papp
Berkadia arranged the refinancing of Celebration Pointe, a Class A, 282-unit community recently constructed in Margate, Fla. The fixed-rate, 11-year Freddie Mac loan has an interest rate below 4 percent.
The $43.3 million loan assumes a portion of the original construction loan and provides additional financing to cover the stabilization of the property, currently 83 percent occupied. The prior loan, originated by Ocean Bank in 2014, was scheduled to mature in December 2017, according to Yardi Matrix. Additionally, Berkadia secured $98.9 million in financing last month for the acquisition of two large South Florida multifamily properties.
Located at 5555 Celebration Pointe Lane, the community was completed in 2016 and features a wide range of amenities including a resort-style pool and sundeck, outdoor lounge areas and gazebo, fitness center, clubhouse with cyber café, playground and controlled entry access gates. Celebration Pointe features one-, two- and three-bedroom units with nine-foot ceilings, stainless steel appliances, granite countertops, balconies and patios, included washers and dryers, impact windows, walk-in closets and designer cabinetry. Rents range from $1375 to $1899 per month.
Stabilization in progress
Berkadia South Florida Senior Managing Director Charles Foschini, Senior Director Jared Hill and Senior Analyst Lourdes Carranza-Alvarez arranged the loan on behalf of borrower Celebration Pointe North LLC.
“What was unusual and especially complicated about this transaction is that the property is not yet stabilized,” said Foschini, in prepared remarks. “The extra year on this 10-year loan is part of Freddie’s lease-up program and essentially gives the owner the ability to exit their construction loan with permanent terms, while providing additional time to lease up and stabilize the property.”
Image courtesy of Yardi Matrix