NORCROSS, GA - Berkadia announces it has secured debt for the refinance of The Carter @ 4250, a 300-unit apartment community located in Norcross, Georgia, on behalf of the sponsor, Miami-based One Real Estate Investment (OREI). In addition, Berkadia also sourced a capital group to recapitalize one of the sponsor’s equity partners.
Senior Managing Director Mitch Sinberg of Berkadia’s Boca Raton office, along with Managing Director Brad Williamson of Berkadia’s Miami office, arranged a $29.135 million loan through Freddie Mac. Berkadia’s Joint Venture Equity and Structured Capital Group in New York, led by Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick, lined up an institutional-quality equity partner, Electra Capital, to complete the equity stack for OREI.
Freddie Mac provided a 10-year, sub 3% floating-rate loan with five years interest only and a 75% percent loan to value. The proceeds were used to refinance the existing bridge loan and recapitalize the deal.
This is the second time this year that Berkadia has arranged debt and sourced equity for an OREI property. In May, Berkadia also arranged senior debt and a $4.09 million preferred equity investment through Electra Capital for OREI’s acquisition of Element at University Park, a 192-unit apartment community in College Station, Texas.
“This loan replaced a bridge loan, and through Freddie Mac we were able to significantly lower OREI’s cost of capital, increase proceeds by over a half million dollars post application, and ultimately help them execute their business plan,” said Williamson. “We also closed in an expedited fashion.”
“In both transactions, Electra Capital was able to move quickly with favorable terms for the sponsor,” said Kirkpatrick.
Jeronimo Hirschfeld, President and CEO of OREI, added, “With this refinance and three acquisitions, OREI is pleased to announce that we have closed on our fourth transaction during the coronavirus pandemic. With excellent partners we continue to grow our portfolio of 200+ unit value-add multifamily assets throughout Texas and the Southeast in this challenging environment.”
Built in 1985, The Carter @ 4250 is situated at 4250 Jimmy Carter Boulevard and offers one- and two-bedroom apartments ranging in size from 707 square feet to 1,052 square feet. It is located less than ten minutes away from a variety of restaurants, apartment communities, churches, salons, and stores. Community amenities feature a swimming pool, on-site management, a playground, free weights, a BBQ/picnic area, on-site maintenance, a clubhouse, a laundry center, a fitness center, a club discount, a business center, a sports court, and a dog park.