Berkadia Secures $31.45 Million in Financing for Two Apartment Communities in Daytona Beach

DAYTONA BEACH, FL Berkadia has arranged $31.45 million in financing for two Daytona Beach communities: Lake Forest, a 240-unit multifamily asset, and Jade Park Apartments, a 144-unit multifamily asset. Senior Managing Director Mitch Sinberg, Associate Director Matthew Robbins, and Director of Operations Jared Hill of Berkadia’s South Florida office, arranged a $27.75 million senior loan and a $3.7 million mezzanine loan. The closing marks the second transaction using Freddie Mac’s Workforce Housing Mezzanine Loan pilot, which incentivizes multifamily property owners to keep rents at levels affordable to working families without any federal, state or municipal subsidy. The buyer was an affiliate of Lloyd Jones in Miami, purchasing the property for $37 million.

Freddie Mac originated 10-year, fixed-rate senior and mezzanine loans with aggressive interest rates.

"The first mortgage and mezzanine loans are accretive to the community by preserving workforce housing with rental restrictions for the term of the loans,” said Sinberg. “Simultaneously, it’s accretive to the borrower by providing a low cost of capital alternative to additional equity in exchange for the rental restrictions. This product makes a statement for Freddie Mac's role in preserving affordable workforce housing by partnering with top notch operators like Lloyd Jones."

Announced in summer 2018, the Freddie Mac Workforce Housing Mezzanine Loan pilot is an innovative new financing option – a private market execution that encourages the preservation of affordable and workforce housing. The mezzanine loan is originated simultaneously with a conventional Freddie Mac loan in a streamlined single-source process, offering favorable financing terms and additional debt capital for the borrower in exchange for the borrower voluntarily limiting annual rent growth on 80 percent of the units at the property, thereby preserving rents at more affordable levels for the life of the loan. 

“This transaction will limit rent growth on more than 300 rental units in these properties, helping to keep them affordable to low- and moderate-income families. It is an excellent example of the types of properties our Mezzanine Loan is designed to attract,” said Amanda Nunnink, senior director of production at Freddie Mac Multifamily. “We are thrilled to see borrowers taking advantage of the incentives provided by this innovative new financing and we thank the strong team at Berkadia for their partnership on this transaction.”

Built in 1987 and 1985, Lake Forest and Jade Park are located adjacent to each other and will be operated together as a 384-unit property. One-, two- and three-bedroom units offer a dishwasher, walk-in closets, vaulted ceilings, fireplace, washer/dryer and storage units.

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


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