Berkadia Brokers Fort Myers Community Transaction
- Aug 10, 2018
Berkadia has arranged $38.2 million in acquisition financing for the $55 million purchase of Fountains at Forestwood, a 397-unit multifamily community in Fort Myers, Fla. Senior Managing Director Mitch Sinberg, Associate Director Matt Robbins and Director of Operations Jared Hill of Berkadia’s South Florida office secured the 10-year, fixed-rate Freddie Mac green-up loan, on behalf of an affiliate of Lloyd Jones Capital.
“The overall transaction required a highly structured product as the buyer had capital that needed to be deployed through a 1042 exchange after selling an unaffiliated entity to an ESOP. Since the 1042 exchange didn’t allow for additional equity partners, we structured subordinated debt to cover any additional capital needs of the client,” said Sinberg, in a prepared statement. Sinberg and Robbins also led the negotiations on another Florida community that received a $40.5 million acquisition loan held by Freddie Mac’s green-up program, namely the 300-unit Art Avenue in Orlando.
Located at 1735 Brantley Road, Fountains at Forestwood is close to Interstate 75 and Florida Southwestern State College is within 2 miles. Dining, retail and entertainment venues are also within a 10-minute drive. According to Yardi Matrix data, the property was 91.4 percent occupied at the time of the sale. Completed in 1985, the 397 loft-style, luxury one- and two-bedroom apartments spread across 27 buildings. Common-area amenities include controlled access, a resort-style swimming pool, a 24-hour fitness center, lakefront jogging trails, a tennis court, three laundry facilities and a car wash center.
Image courtesy of Yardi Matrix
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