Canyon Capital Provides Related JV with $157M for Miami Condo/Hotel

HFF arranges $157 million for a mixed-use Miami development; Equus Capital Partners acquires 288 units in Atlanta; and Berkadia arranges more than $26 million for two multifamily properties on the East Coast.

SLS Brickell 1Miami—HFF has secured $157 million in construction financing via Canyon Capital Realty Advisors for a joint-venture development in Miami. Related Group and sbe Hotel Group are working together on the SLS Brickell Hotel and Residences, a 51-story mixed-use hotel and condo tower that is due for completion in 2016.

The tower sits on a 1.3-acre site at 1300 South Miami. Upon completion, it will contain 453 SLS-branded condos and 124 SLS hotel keys. There will also be luxury restaurants, gym, spa, pool deck, ballroom, meeting space, roof-top dining and a triple-height valet drop off area with valet parking. Phillipe Stark is designing the interiors.

“The financing of the SLS Brickell is a significant development that underlines the market’s confidence in the depth of the Brickell neighborhood and the future of the downtown hotel market,” says Max Comess, director at HFF.  “The project represents the first stand-alone, mixed-use hotel and branded-residential tower to be capitalized off the beach in Miami this cycle.”

Comess working with HFF managing director Manuel de Zárraga and associate Scott Wadler in closing the deal. HFF’s Hotel Group has been active in the sale and financing of similar hotels across the country. In the first three quarters of 2014, the firm financed or sold 74 hotels and resorts with total transaction volume totaling nearly $1.98 billion.

Equus nabs 288 units in Atlanta

Madison at BrookhavenAtlanta—Equus Capital Partners has expanded its footprint with the acquisitions of The Clairmont, a 288-unit community located in Atlanta. Madison Apartment Group LP, the operating arm of Equus, will manage the community, which was 95 percent occupied at the time of sale. The asset sits in an in-fill location fewer than five miles east of Buckhead in the suburban Atlanta community of Brookhaven.

“The transaction provided us with an opportunity to acquire a well located multifamily community in the growing and dynamic Atlanta market,” says Steve Pogarsky, vice president of Equus. “We continue to seek opportunities to expand our portfolio with strategically located assets in primary and secondary markets nationwide.”

Equus has already renamed the property Madison Brookhaven. Amenities include a clubhouse, fitness center, two pools and a dog park. There is also an improvement plan in the works, with Equus planning to invest $3 million into the amenity and unit upgrades.

Berkadia arranges over $26M for two multifamily properties on East Coast

Boca Raton, Fla.—The Boca Raton office of Berkadia recently arranged $26.1 million for two multifamily properties, one located in Maryland and the other in Florida. Senior Vice President Michael Wallace and Senior Vice President and South Florida Manager Mitchell Sinberg secured the financing through Berkadia’s Freddie Mac Program.

Sinberg and Wallace first closed $18.7 million for borrower Franklin Melvin LLC, who will use the 10-year, fixed-rate loan to refinance existing debt on Melvin Park, located in Baltimore. The loan features a sub-4 percent interest rate, interest-only payments for the full term and a 65 percent loan-to-value (LTV) ratio. Situated at 351 Suter Road, the property consists of 263 two-bedroom units. Amenities include a playground, laundry facility and extra storage space. The property was 98 percent occupied at closing.

“Our team has a successful, long-standing relationship with Freddie Mac,” says Sinberg. “This, coupled with our extensive knowledge of the local markets, allowed us to deliver attractive loan terms in a competitive financing environment.”

Additionally, Sinberg and Wallace provided $7.4 million in acquisition financing for borrower Bay Pointe Tower Apartments LLC to purchase Serenity Towers, a multifamily community located in South Pasadena, Fla. The seven-year loan features a floating interest rate in the low-2 percent range, 78 percent LTV ratio and 30-year amortization schedule after a partial interest-only period. The property, located at 880 Oleander Way South, was acquired for $8.6 million and consists of 210 age-restricted, affordable-living units. It is presently 97 percent occupied.

“Berkadia has a significant presence in the southeast region, which is bolstered by our commitment to market intelligence,” says Wallace. “The fact that this client returned to us when they needed new financing speaks to our client-first mentality and ability to provide the best solutions available.”