TODAY’S DEALS: MAA Completes Two Florida Acquisitions

MAA acquires two recently constructed apartment communities in Florida; Edgewood Capital finances the acquisition of a 186-unit property in Jacksonville; and Berkadia originates an acquisition loan at 80 percent LTV.

Atlantic Crossing

Gainesville, Fla.—MAA has acquired two recently constructed Florida apartment communities. The two deals, which totaled $42.8 million and a combined cap rate 6.1 percent, were funded with borrowing under existing credit facilities and common stock issuances.

“We are thrilled to expand our presence in both Gainesville and Jacksonville,” says Al Campbell, CFO at MAA. “Both communities compliment our portfolio of well-positioned, high-quality properties located in both large and strong secondary markets across the Sunbelt.”

The Retreat at Magnolia Parke Apartments is a 204-unit development that was completed in 2008. Amenities include a movie theater, resort-style pool, game room and an outdoor fireplace. Rooms average 1,010 square feet in size.

The second property, Atlantic Crossing, is a 200-unit community within walking distance of Jacksonville’s newest and largest retail and office parks. The property was constructed in 2007/2008 as condominiums. Amenities include a clubhouse with Internet café, a fitness center and a pavilion with gas grills. Units average 1,241 square feet.

Edgewood Capital finances acquisition of 186-unit Jacksonville property

Jacksonville, Fla.—Edgewood Capital has funded a $3,850,000 first mortgage bridge loan secured by Eagles Pointe, a 186-unit apartment complex in Jacksonville, Fla. The two year loan provides 70 percent of the total capitalization, which includes acquisition, capital improvement, operating reserve and transaction costs.

The 24 two-story garden-style buildings were built in 1972 and contain a mixture of one-, two- and three-bedroom units situated on 11.7 acres. The borrower plans to improve performance at the property with on-site property management and a $1 million renovation program. Eagles Point is the fifth residential complex the borrower has acquired in the past 16 months, three of which were funded by Edgewood Capital.

Berkadia originates acquisition loan of $12.3M at 80% LTV

Abilene, Texas–Berkadia Commercial Mortgage originated a total of $12.26 million in fixed-rate debt through its Fannie Mae program for the acquisition of two Abilene, Texas multifamily properties. Berkadia originated $8,160,000 for Indian Run Apartments and $4,100,000 for Stonegate Apartments. The 80 percent loan-to-value loans feature 10-year terms and 30-year amortizations.

Indian Run is a 256-unit, 187,944 square-foot garden-style apartment complex located on approximately nine acres. The average unit size is 734 square feet. Situated on five acres, Stonegate is a 136-unit garden-style, 115,472 square-foot apartment complex with an average unit size of 849 square feet. Both properties are 95 percent occupied.

Senior Vice Presidents Jon Gilfillan and Cutt Ableson of the Berkadia Houston office originated the transactions. The borrowers were SMV Indian Run LP and SMV Stonegate LP.

“The borrower requested maximum proceeds, and Berkadia was able to achieve that goal–80 percent of the purchase price,” Gilfillan says. “Berkadia was also able to lock the interest rate in accordance with the time frame of the purchase and sales agreement.”

Gilfillan and Ableson have closed $210 million (2,700 units) in multifamily financing in the 12 months since Berkadia opened its Houston office in April 2010.

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