Berkadia Team Secures $100M for Aventura Investor's Apartment Deals
Berkadia secures $100 million in loans for an Advenir's $125 million purchase of two apartment complexes in Coconut Creek and Sarasota County.
October 31, 2017 at 01:21 PM
8 minute read
An investment company that bought two Florida apartment complexes got a big chunk of the money in loans — secured by Berkadia.
Berkadia, a real estate firm that's a joint venture of Berkshire Hathaway and Leucadia National Corp., secured two loans totaling $98.9 million for Advenir Inc., an Aventura-based company that acquires and operates property on behalf of investors, to purchase the apartments.
Berkadia senior managing director Charles Foschini, managing director Christopher Apone and senior real estate analyst Lourdes Carranza-Alvarez, all based in Miami, secured the two loans.
Both loans closed Oct. 6. Both were secured through Freddie Mac. And both are seven-year loans with competitive interest rates.
The interest rates are less than 4 percent, Foschini said, although he declined to disclose the specific rate.
“When we first put the loan under application, which is probably 45 to 60 days before the closing date, the loans were floating-rate loans. There was some volatility in the market where interest rates dropped at a point in time, and the borrower took advantage of that and switched to a fixed-rate loan to get a better and safer execution,” Foschini said.
One of the loans was for $52.3 million, about 81 percent of the $64.5 million purchase price for the 360-unit Crown Pointe apartments at 4142 Cocoplum Circle in Coconut Creek. The other loan was for $46.6 million, about 77 percent of the $60.5 million purchase price for the 358-unit Gateway Lakes apartments at 1000 Marlin Lakes Circle in Sarasota County.
Advenir bought the communities from Wood Partners, an Atlanta-based multifamily development, acquisitions and management company, and renamed them.
Crown Pointe was renamed Advenir at Cocoplum, and Gateway Lakes is Advenir at Gateway Lakes.
The purchase price means Advenir paid $179,167 per unit at Advenir at Cocoplum and $168,994 per unit at Advenir at Gateway Lakes.
Hurricane Irma, the storm that made landfall in the Florida Keys on Sept. 10, impacted the closing but not in the way seen in other transactions that had delayed closing dates.
In this case, Oct. 6 was the original closing date, but both complexes had to be reinspected for structural damage after the storm, Foschini said. In the end, it turned out only landscaping was damaged.
“We also had concern regarding potential insurance cost. However, this borrower is a very sophisticated borrower and has an insurance blanket that covers their entire portfolio, and they experienced no change in the cost of their insurance in the time we looked at the property to the time they closed the loan,” Foschini said.
Advenir at Cocoplum, built in 1987, and Advenir at Gateway Lakes, built in 1996, qualified for the Freddie Mac Green Up program that rewards property owners who commit to reduce power and water consumption.
In this case, both apartment complexes qualifying for the program was good news for Advenir as well as for renters, according to Foschini.
“The lower electric and water bills will be a benefit to both the investor and to the user of the units,” he said.
The question of qualification for Green Up is detail-driven.
“During the due diligence period, a lender does a special engineering report to see if the property qualifies and if there is an expectation that energy costs and water consumption will go down. If the report suggests the answer is yes, then the borrower gets the benefit of that in the spread and is required to do the improvements that the engineering report suggests,” Foschini said, explaining the process.
Advenir at Cocoplum and Advenir at Gateway Lakes have one-, two- and three-bedroom apartments, according to their websites. Amenities at Advenir at Cocoplum amenities include a fitness center, barbecue grills, swimming pool and dog park. Some of the Advenir at Gateway Lakes amenities are a fitness center, walking trail, swimming pool and tennis court.
An investment company that bought two Florida apartment complexes got a big chunk of the money in loans — secured by Berkadia.
Berkadia, a real estate firm that's a joint venture of
Berkadia senior managing director Charles Foschini, managing director Christopher Apone and senior real estate analyst Lourdes Carranza-Alvarez, all based in Miami, secured the two loans.
Both loans closed Oct. 6. Both were secured through
The interest rates are less than 4 percent, Foschini said, although he declined to disclose the specific rate.
“When we first put the loan under application, which is probably 45 to 60 days before the closing date, the loans were floating-rate loans. There was some volatility in the market where interest rates dropped at a point in time, and the borrower took advantage of that and switched to a fixed-rate loan to get a better and safer execution,” Foschini said.
One of the loans was for $52.3 million, about 81 percent of the $64.5 million purchase price for the 360-unit Crown Pointe apartments at 4142 Cocoplum Circle in Coconut Creek. The other loan was for $46.6 million, about 77 percent of the $60.5 million purchase price for the 358-unit Gateway Lakes apartments at 1000 Marlin Lakes Circle in Sarasota County.
Advenir bought the communities from Wood Partners, an Atlanta-based multifamily development, acquisitions and management company, and renamed them.
Crown Pointe was renamed Advenir at Cocoplum, and Gateway Lakes is Advenir at Gateway Lakes.
The purchase price means Advenir paid $179,167 per unit at Advenir at Cocoplum and $168,994 per unit at Advenir at Gateway Lakes.
Hurricane Irma, the storm that made landfall in the Florida Keys on Sept. 10, impacted the closing but not in the way seen in other transactions that had delayed closing dates.
In this case, Oct. 6 was the original closing date, but both complexes had to be reinspected for structural damage after the storm, Foschini said. In the end, it turned out only landscaping was damaged.
“We also had concern regarding potential insurance cost. However, this borrower is a very sophisticated borrower and has an insurance blanket that covers their entire portfolio, and they experienced no change in the cost of their insurance in the time we looked at the property to the time they closed the loan,” Foschini said.
Advenir at Cocoplum, built in 1987, and Advenir at Gateway Lakes, built in 1996, qualified for the
In this case, both apartment complexes qualifying for the program was good news for Advenir as well as for renters, according to Foschini.
“The lower electric and water bills will be a benefit to both the investor and to the user of the units,” he said.
The question of qualification for Green Up is detail-driven.
“During the due diligence period, a lender does a special engineering report to see if the property qualifies and if there is an expectation that energy costs and water consumption will go down. If the report suggests the answer is yes, then the borrower gets the benefit of that in the spread and is required to do the improvements that the engineering report suggests,” Foschini said, explaining the process.
Advenir at Cocoplum and Advenir at Gateway Lakes have one-, two- and three-bedroom apartments, according to their websites. Amenities at Advenir at Cocoplum amenities include a fitness center, barbecue grills, swimming pool and dog park. Some of the Advenir at Gateway Lakes amenities are a fitness center, walking trail, swimming pool and tennis court.
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