FORT MYERS, FL – Berkadia announced today it has arranged $38.209 million in acquisition financing for The Fountains at Forestwood, a 397-unit multifamily community in Fort Myers, Florida. Senior Managing Director Mitch Sinberg, Associate Director Matt Robbins, and Director of Operations Jared Hill of Berkadia’s South Florida office secured the loan on behalf of an affiliate of Lloyd Jones Capital, a multifamily real estate investment firm based in Miami. The property traded for $55 million, or approximately $138,000 per unit.
Freddie Mac originated the 10-year, fixed-rate loan through its “Green Up” program, which provides financing incentives for borrowers committed to green improvements including reduction in water consumption by 25 percent.
“The overall transaction required a highly structured product as the buyer had capital that needed to be deployed through a 1042 exchange after selling an unaffiliated entity to an ESOP,” said Sinberg. “Since the 1042 exchange didn’t allow for additional equity partners, we structured subordinated debt to cover any additional capital needs of the client. This was a very unusual structure for agency lending but through the creativity and effort of the borrower, Freddie Mac, Berkadia and the subordinate debt provider, we were able to accomplish the very challenging task at hand.”
Built in 1985, The Fountains at Forestwood is located at 1735 Brantley Road and has 397 loft-style, luxury one- and two-bedroom apartments. Amenities include a resort-style swimming pool, 24-hour fitness center, lakefront jogging trails, and a car wash center. It is conveniently located close to I-75 and Florida Southwestern State College.
About Berkadia: Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com