Berkadia announces that it has secured $ 91 million in financing for the acquisition of two multi-family properties in the Tampa Bay area: Henley Tampa Palms, a 315-unit apartment community in Tampa, and Enclave at Northwood, a community of 188 unit apartments in Clearwater, Florida. . Senior Managing Director Mitch Sinberg of Berkadia Boca Raton, Managing Director Brad Williamson of Berkadia Miami, Senior Managing Director Justin Ownby of Berkadia Tampa and Associate Director Wesley Moczul of Berkadia Orlando arranged the financing for the $ 112 million sale to the name of 29e Street Capital (29SC), a private real estate investment company focused on the acquisition and development of multi-family assets. Formed in 2009, 29SC’s current portfolio consists of over 17,000 existing units and a new construction pipeline of over 3,500 units.
PGIM Real Estate is at the origin of the 3-year variable rate loan with extension options and an interest rate of less than 3%. The loan includes $ 85.4 million in seed funding, with $ 6.09 million in future funding for capital improvements.
“The Tampa metro area benefited from a roaring Sunbelt wave,” said Williamson. “As the pandemic has dampened demand for apartments nationwide due to public health lockdowns, the greater Tampa-St. Petersburg weathered the US trend, and rental activity in the second quarter was almost double the new offering. This acquisition illustrates the strong investor demand for multi-family assets well located in the region.
Trevor Arnholt, Vice President of PGIM Real Estate, who led the loan origination on behalf of the company, added: “PGIM Real Estate’s appetite for core plus loans remains strong, particularly for multi-family assets. located in Florida and other key growth markets in the United States. “
“We are targeting irreplaceable assets in desirable locations,” said Christopher Steiner, vice president of acquisitions for 29SC in Florida. “These properties are two other great additions to a multi-family portfolio from coast to coast that our team has expanded by over 4,500 units through 20 acquisitions last year.”
According to Berkadia’s Mid-Year Multifamily Report for Tampa-St. Petersburg, more than $ 1 billion in multi-family subway assets were traded in the first half of 2021, with an average cap rate of 4.5%. The local metro workforce has experienced a rapid recovery, operating at 98% of pre-COVID levels in June 2021, even as businesses related to recreation and tourism struggled to attract workers. Hiring in the largest employment sector in the market, professional and business services, greatly contributed to the recovery in employment. The workforce in the sector has increased by 9.8%, or 23,400 net positions, over the past 12 months.
Downtown Tampa has also seen a wave of construction projects that are expected to bring an estimated investment of $ 13 billion to the city through 2022.
Built in 1997, Henley Tampa Palms is located at 15350 Amberly Drive. One-, two- or three-bedroom units feature nine-foot ceilings, attached garages, oversized closets, stainless steel appliances, sunken living rooms, plank floors, a fireplace, and fireplace. a patio. Community amenities include a resort-style swimming pool, fitness center, clubhouse, dog park, and air-conditioned racquetball courts. The property is close to The Shoppes of Amberly, and there are five parks within five miles of the property. Tampa International Airport is half an hour away.
Built in 1985, Enclave at Northwood is located at 2690 Enterprise Road East. The one, two and three bedroom units feature fireplaces, hardwood floors, granite countertops, vaulted ceilings, walk-in closets, washers and dryers as well as spacious decks and balconies. Community amenities include two swimming pools, a residents’ clubhouse, tennis court, fitness center, and lush landscaping. The Enclave at Northwood is located half an hour from the St. Petersburg-Clearwater International Airport and offers easy access to top quality schools, parks and the Westfield Countryside shopping center.