NEW YORK, NY - Berkadia today announced that it has arranged an equity recapitalization for a $138 million, 1,217-unit multifamily portfolio comprising six properties in Florida and Georgia. Berkadia’s Joint Venture Equity and Structured Capital Group, led by Noam Franklin, Chinmay Bhatt and Cody Kirkpatrick, sourced the new equity investment from a publicly traded REIT on behalf of Strategic Holdings, a vertically integrated real estate platform based out of Westlake Village, California.
The equity investment comes behind senior Fannie Mae/Freddie Mac loans on each property and gives Strategic Holdings ample capital to target new acquisitions throughout the Southeastern United States. Jeremy Lynch, Director of Mortgage Banking in Berkadia’s Philadelphia office, originated four of the six agency loans in the portfolio.
“Strategic Holdings was looking for a new equity partner that would recognize the value that they had already created with additional upside still remaining,” said Noam Franklin, Managing Director and Head of Eastern US for Berkadia’s JV Equity & Structured Capital Group. “The high caliber of the sponsor combined with the Sunbelt location of the properties in the portfolio allowed our team to generate a lot of interest in this portfolio immediately. Strategic Holdings ultimately decided on a publicly traded REIT that understood its long-term vision.”
Brian Alonge, Chief Financial Officer of Strategic Holdings, added “We trusted Berkadia’s JV Equity & Structured Capital Group to identify the right capital partner that would deliver the terms we were looking for. We are excited to further enhance these properties while having fresh capital for new acquisitions as we move forward.”
Strategic Holdings acquired the six properties in the portfolio between 2016 and 2019. The properties are:
- Belmont Crossing – Smyrna, GA, 192 units, 1964 vintage
- Park on the Square – Pensacola, FL, 240 units, 1999 vintage
- Sierra Terrace – Atlanta, GA, 135 units, 1968 vintage
- Sierra Village – Atlanta, GA, 154 units, 1973 vintage
- The Commons – Jacksonville, FL, 328 units, 1975 vintage
- Georgetown Crossing – Savannah, GA, 168 units, 1994 vintage
About Berkadia: Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, 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