Berkadia and Related Fund Management Provide $217M Recap for Florida MF Portfolio
Financing will support a three-building multifamily portfolio of 1,138 units in Fort Myers and Orlando
By Brian Pascus July 19, 2023 12:59 pm
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JSB Capital Group, a real estate investment firm headquartered in Miami, and BLD Group, a national multifamily developer and operator, have secured a $217 million recapitalization for a three-property, 1,139-unit portfolio in Orlando and Fort Myers, Fla.
Berkadia originated a $185 million fixed-rate Freddie Mac (FMCC) loan with a 10-year term at 60 percent loan-to-value, while Related Fund Management, a multistrategy real estate investor with more than $11 billion under management, provided $32 million in preferred equity.
The debt and equity financing for the joint venture were arranged by Berkadia South Florida’s team led by Senior Managing Director Mitch Sinberg and Managing Directors Brad Williamson, Scott Wadler and Matthew Robbins.
Sinberg said that Berkadia was able to replace a debt fund’s loan, whose floating rate increased from 2 percent to 7 percent, with a fixed-rate agency loan backed by preferred equity.
“As challenging as the capital markets currently are, this demonstrates that liquidity is still available for credible and quality sponsors,” said Sinberg in a statement. “This will preserve millions of dollars of cash flow for the client and secure their success for the project going forward.”
The financing will go toward recapitalizing a trio of South Florida multifamily properties.
400 North is a 300-unit luxury apartment mid-rise at 400 North Avenue in Orlando. The building features one-, two- and three-bedroom units ranging in size between 753 square feet and 1,328 square feet. The building opened in 2019.
M2 at Millenia is a four-story, 403-unit gated community that opened in 2019. Located at 4206 Eastgate Drive in Orlando, the community offers one-, two- and three-bedroom apartment homes and shared spaces that include a pool, a fitness center, a clubhouse, a business center, outdoor grilling space, and an entertainment lounge.
The Venetian Apartments at 4051 Regata Way in Fort Myers are luxury one-, two- and three-bedroom rental residences that feature spacious layouts and modern architecture. Venetian Apartments include gated community entrances, detached garages and a shared resort-style pool. Built in 2018, the collection of three-story buildings hold a total of 437 units.
JSB Capital is a real estate firm with investments across all CRE asset classes. Its 132-property multifamily portfolio spans 23 states and features more than 47,000 units, while its 14-unit industrial portfolio totals more than 6.9 million square feet. The firm also has 12 office properties in nine states boasting more than 5 million square feet and a seven-state, nine-property hospitality portfolio of approximately 875 keys.
BLD Group develops rental properties in Colorado and Florida. The firm currently has two Colorado properties in pre-development in Durango and Pueblo that will add 736 residential units to the market.
Brian Pascus can be reached at bpascus@commercialobserver.com
