Florida’s Advenir Gets $80M Berkadia Loan on Miami-Area Resi Asset
By Matt Grossman May 17, 2019 3:55 pmreprints
An apartment complex in South Florida has wrapped a $79.5 million Freddie Mac refi from Berkadia, the lender announced today.
The seven-year fixed-rate loan refreshes the capital stack for Turnbury at Palm Beach Gardens, a 540-unit development in Palm Beach Gardens, Fla., a coastal municipality about ten miles north of West Palm Beach. The debt package on the property—owned by Advenir Living, a Miami-based multifamily landlord—is interest-free for the first three years and comes at an 80 percent loan-to-value ratio, which values the property at about $99 million.
Advenir bought Turnbury last year and immediately embarked on a renovation scheme, according to Charles Foschini, a Berkadia executive who worked on the deal. Christopher Apone and Lourdes Carranza-Alvarez also contributed to the transaction.
Advenir “bought [Turnbury] with financing from Freddie’s value-add program, which allows for renovation,” Foschini explained. “As LIBOR has jumped up and as treasuries have jumped down, they saw an opportune time when they could take interest-rate risk off the table” by locking in longer-term debt.
The terms of Freddie Mac initial acquisition financing—which was also originated by Berkadia—still require Advenir to complete the planned renovations, which include selective work on both interior and exterior aspects, Foschini said.
The garden-apartment-style campus features a mix of one-, two- and three-bedroom apartments on a landscaped property that features a fitness center, swimming pools, walking trails and a dog park. Two-bedroom units with approximately 1,000 square feet of living space rent for between $1,450 and $1,650 per month, as per Apartments.com, which shows property listings.
Palm Beach Gardens, at the far northern extremity of the Miami metropolitan area, has grown quickly since it was first developed starting around 1960. Between 1970 and 2010, the population expanded by an average of 72 percent each decade, according to census data. Today, just fewer than 50,000 people live there, and families earn a median income of $84,000 per year, well above the national level.
Those strong fundamentals have promoted sound economics for multifamily developers even with a robust pipeline of new apartment projects, Foschini said.
“South Florida has a very strong supply of multifamily [housing], but an even healthier supply of job and population growth. Assets like this one remain a value in the marketplace for working-class renters,” the financier reported.
Advenir representatives didn’t immediately respond to an inquiry.