BETHESDA, MD - Berkeley Point Capital LLC recently provided $29,575,000 in first mortgage proceeds for the acquisition of Wesley Village Apartments, a 301-unit, class-A, luxury apartment community located in Charlotte, NC. The transaction was structured under the Fannie Mae Delegated Underwriting and Servicing (DUS®) program as a five-year, 2.57% fixed rate execution with standard yield maintenance. Berkeley Point Capital’s Mitch Clarfield, Senior Managing Director of its Los Angeles, CA office led the transaction for the Berkeley Point team.
The property, along with an adjacent vacant parcel of land, was acquired for $45,750,000. The adjacent parcel is zoned for an additional 199 units and the sponsor, KBS Legacy Partners REIT, wanted to retain flexibility so that it could build additional units or sell the adjacent parcel in the future. Berkeley Point Capital worked with Fannie Mae to “carve out” the additional parcel from the collateral for the loan. Berkeley Point and Fannie Mae will also allow the additional units to share access and amenities with the existing parcel, so long as the additional units are owned by a Sponsor affiliate and are unencumbered.
The property also benefits from a real estate tax reimbursement agreement with the city of Charlotte that expires in 2021 and resulted from infrastructure improvements made by the original developer. After ensuring that future tax reimbursements would be tied to the property, Berkeley Point requested an underwriting waiver to account for the reimbursement, and successfully obtained additional loan proceeds for the sponsor.
Unit amenities consist of stainless steel appliances, hardwood-style flooring, island kitchens, ceramic tile bathroom floors, private terraces, granite countertops, 9 & 20 foot ceilings and in-unit washer/dryers. Property amenities include a clubhouse, fitness center, business lounge, yoga studio, gaming center, swimming pool with cabanas, poolside barbeques, outdoor fireplace, dog park, controlled access, community recycling center, detached garages and storage.
The sponsor of this transaction is KBS Legacy Partners REIT a non-traded REIT co-sponsored by KBS Capital Advisors LLC and Legacy Partners Residential, Inc. KBS Realty is one of the nation's largest buyers of commercial real estate and structured debt investments. Legacy Partners is a leading real estate investment manager, owner and operator, with a comprehensive portfolio of commercial and residential assets in the western United States. Both KBS and Legacy are preeminent players in the real estate market with strong track records of success.
“We enjoyed working with the KBS Legacy Partners team on another successful closing,” said Mitch Clarfield, Berkeley Point Capital. “This marks our second transaction with the REIT and completes over $600 million of business with Legacy Partners over the past 6 years. In addition to the exceptional rate that we were able to obtain on behalf of KBS Legacy Partners, this transaction required us to think outside of the box and we appreciate the opportunity to add value in these situations.”
about berkeley point capital
Berkeley Point Capital LLC is one of the nation’s leading multifamily capital solutions providers. The firm boasts a 30+ year history and a servicing portfolio of over $29 billion representing in excess of 2,100 loans in 45 states and the District of Columbia. This extensive and diverse national platform allows us to provide our clients with superior execution in every market in the country.
Berkeley Point is owned by entities affiliated with Ranieri Real Estate Partners LP and WL Ross & Co. LLC. As a part of its multifamily expertise, the firm offers the full complement of Fannie Mae, Freddie Mac, and FHA products.
Focusing on a three-pronged strategy of exceptional people, unique multifamily capital solutions and superior technology, our team of 200 people located in nine offices across the nation provides our customers a competitive advantage through speed, creativity, ease of interface and certainty of execution.
For more information on Berkeley Point Capital, please visit our website at www.berkpoint.com.