Taurus Gets $43M in Freddie Mac Debt for Tampa Multifamily Acquisition


A Boston-based private equity firm has scored a $43.1 million Freddie Mac mortgage from Berkadia to buy a large apartment complex in Tampa, Fla., Berkadia has announced.

The 10-year, floating-rate debt is set to fund Taurus Investment Management‘s acquisition of Mezzo at Tampa Palms, a garden-apartment development about 10 miles north of the city’s central business district. The loan now moves to Freddie Mac’s books for likely securitization in an upcoming multifamily mortgage bond.

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“After over a third of the units were renovated, the property exemplified proven value-add potential and upside with the opportunity to further the asset’s value with additional capital improvements,” Mitch Sinberg, a Florida-based Berkadia executive, said in a statement. “The Tampa [area] also continues to outperform other job markets nationwide, making it a favorite for multifamily investors.”

Berkadia’s Matthew Robbins and Wesley Moczul worked with Sinberg to organize the loan.

The development, sold to Taurus by Preston Giuliano Capital Partners for $59 million, lies in Tampa Palms, a neighborhood that’s part of an expansive area north of the city that was annexed by Tampa in 1988. (The Tampa Bay Times first reported the transaction price.) The 27-year-old property, with 340 units, has a mix of one-, two- and three-bedroom apartments on a campus that includes swimming pools, a tennis court and a playground. The complex’s marketing materials do not include published rents.

Taurus teamed up with the same lending team for a similar deal in June, when the landlord obtained a Berkadia-originated Freddie Mac loan to buy another Tampa housing development called Lofton Place, about nine miles southwest. That property likewise included a mix of around 300 units on a landscaped campus.

The volume of Freddie Mac’s annual activity is capped by its regulator, the Federal Housing Finance Agency, but a handful of exceptions — like lending on eco-friendly property improvements or on targeted affordable housing — give the government-sponsored housing lender more room to maneuver. Through the first half of 2019, it generated $31.2 billion of new business, about 8 percent faster than its pace in the first six months of 2018. So far this year, a slightly smaller proportion of its deals have come from one of the cap-exempt lending areas, according to statistics that Freddie Mac published.

Berkadia is a lender under Freddie Mac’s Optigo network, a group of about 30 originators authorized to issue Freddie Mac multifamily loans.

Representatives for Taurus did not immediately respond to inquiries.