Berkadia Provides $37M to Recap Orlando Apartment Complex

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Berkadia has originated just over $37.3 million in Freddie Mac (FMCC)-backed debt to recapitalize a 308-unit apartment community in Orlando, Fla., according to information provided by Berkadia. 

The financing was provided to Aventura, Fla.-based owner and investor Advenir Real Estate backed by its Advenir at Polos East Apartments at 1700 Woodbury Road in Orlando. 

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The fixed-rate loan is interest-only for the entirety of its seven-year term and has a 70 percent LTV (loan-to-value), indicating a valuation of over $53 million. The rental complex had previously secured a 10-year Freddie Mac loan with three years of interest-only payments and had a total capitalization of roughly $30.4 million, according to Advenir’s website. 

Berkadia’s Charles Foschini and Christopher Apone — out of the company’s Miami office — arranged the debt on behalf of Advenir. 

“Freddie Mac continues to provide liquidity to the marketplace and execute smart business with exceptional terms,” Foschini said in a statement. “While this transaction was signed up just as the full force of the pandemic was being felt in our economy, Freddie Mac, the Berkadia team and the client worked tirelessly and often remotely to execute the due diligence and fund the loan without delay.”

Advenir bought the asset — built in 1991 — in 2012, and it currently provides a cash return of 10 percent, as per Advenir’s website. The gated community is located just a few miles from the University of Central Florida, which was the country’s largest university by student population pre-COVID-19; it had a total fall 2019 enrollment of 69,525 students, according to the university’s website. 

The complex offers amenities such as a swimming pool, a 24-hour fitness center, a sauna, an internet café, a game room and a pet park as well as separate basketball, volleyball, tennis and racquetball courts. 

Of the 308 residences that are on-site, there’s a mix of one-, two- and three-bedroom units,  with an average size of 877 square feet, according to Berkadia. 

Monthly rents at the site range from $1,100 for the one-bedrooms to around $1,700 for three-bedroom apartments, according to property information from Apartments.com; it also offers seven-, nine-, 12- and 15-month lease terms. 

Officials at Advenir could not be reached.