TODAY’S DEALS: Advenir Acquires 400 Units in North Miami

Advenir completes a $44.5 million acquisition; NorthMarq arranges $89.1 million to refinance a California portfolio; and Centerline provides a $19.5 million Fannie Mae refinance and obtains waivers for a Baltimore property in less than 60 days.

Boca - Berkshires at Walden LakeNorth Miami, Fla.—Advenir is the proud new owner of 400 units in Florida’s tightest submarket with the acquisition of Berkshires at Walden Lake in North Miami. The firm bought the asset from Berkshire Property Advisers for $44.5 million in a transaction brokered by ARA.

“Berkshires at Walden Lake is a top performing asset within its submarket,” says Hampton Beebe, a principal in ARA’s Boca Raton office. “A total of 84 units have already been renovated and the property is achieving healthy premiums over their pre-renovated rents, which is evidence for significant value-add potential.”

Boca - Berkshires at Walden Lake 2Beebe worked alongside fellow principals Avery Klann and Dick Donnellan in representing Berkshire in the disposition. Miami-Dade remains the tightest market in Southeast Florida with a healthy 96.9 percent occupancy average, well above the 94.9 percent national average. The North Miami multifamily submarket of Miami recorded 97 percent occupancy in 4Q 2012, outperforming the overall Miami-Dade market. The submarket’s improvement of 1.7 percent represented the 2nd highest occupancy growth among all submarkets in South Florida.

Berkshires at Walden Lake was built in 1986. It was 95 percent occupied at the time of sale.

NorthMarq arranges $89.1M portfolio refinancing

San Francisco—The San Francisco office of NorthMarq Capital has secured refinancing of $89.1 million for three apartment communities located throughout California. Financing for The Boulders (Walnut Creek, Calif.), Chesapeake Point (San Mateo, Calif.) and Los Robles Apartments (Thousand Oaks, Calif.) was structured with 10-year terms and 30-year amortization schedules. NorthMarq arranged the financing through its relationship with The Guardian Life Insurance Company of America. Prometheus is the owner of all three assets.

“In addition to prepayment flexibility, Guardian offered the borrower the ability to build new units at two of the properties and resize the loans after their completion,” says NorthMarq’s Jeffrey Weidell.

Weidell worked alongside Nathan Prouty and Andrew Slaton, also of NorthMarq’s San Francisco regional office, in securing the refinancing.

Centerline provides $19.5M Fannie Mae refi, obtains waivers for Baltimore housing

New York—Centerline Capital Group, a provider of real estate financial and asset management services for affordable and conventional multifamily housing, and a subsidiary of Centerline Holding Co., announced it has provided a $19.5 million Fannie Mae DUS loan to refinance Pickwick East Apartments, a multifamily facility located in Baltimore.

The loan facility is a cash-out refinance of a maturing Fannie Mae DUS. The borrower is The Rachuba Group, a single asset LLC and repeat Centerline customer. “The borrowers will be taking the $4.6 million plus in net proceeds to re-invest in the property and to recoup some captured equity,” notes Bryan Cullen, director at Centerline Capital Group.

Pickwick East Apartments is a 655-unit property that was originally built in 1971 by legacy companies of the current borrower. Comprised of 38 two- and three-story brick buildings with pitched roofs, the property is situated on 35 acres in northeast Baltimore. The property has primarily one- and two-bedroom apartments and a few three-bedroom units.

The property qualifies as a student housing property because 50 percent of the residents are students; however, it is not marketed as a student property, and the students on-site generally have families.

“One of the unique things about this deal was that Centerline had to close the loan in less than 60 days and had to obtain waivers for student presence and pricing,” says Cullen. “The final loan was under 50 percent of appraised value and the term was 15 years. The borrower selected a 25 year amortization schedule in order to amortize the loan quicker.”

“We have worked with Bryan for a number of years before deciding to go forward on this refinance but had chosen to go with an FHA loan and a different lender. Increasing interest rates and timing concerns necessitated going back to Centerline in August,” Theresa Leatherbury with The Rachuba Group says. “Bryan provided us with a number of options, and we chose a Fannie Mae DUS loan because of the low interest rate combined with our confidence in the ability to fund prior to the October 1st maturity.”

Pickwick Apartments is located within the Pikesville neighborhood of Baltimore, in the northwest corner of the city and within the I-695 Beltway. The neighborhood consists of both single and multifamily uses with retail surrounding the property. Property amenities include a swimming pool, playground, leasing office and 932 parking spaces.

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