
Tampa, Fla. (July 19, 2017) – Berkadia arranged the sale and financing of Columns at East Bay, a 196-unit garden-style multifamily community located in the city of Largo, Florida (Pinellas County). Insula Capital acquired the property for $20.3 million from ECI Group Inc. Berkadia marketed the property on behalf of the seller, and arranged acquisition financing on behalf of the borrower.
Jason Stanton, Senior Director of Berkadia’s Tampa-based Investment Sales team, represented the seller in the transaction, along with the Berkadia team of Cole Whitaker, Senior Managing Director (Orlando), Mary Beale, Director (Orlando), and Greg Rainey, Director (Jacksonville).
Mitch Sinberg, Senior Managing Director, and Matthew Robbins, Associate Director, both of Berkadia’s South Florida-based Mortgage Banking team, secured debt on behalf of Insula Capital. A $17.772 million, three-year, interest-only loan was procured through Freddie Mac’s Value-Add and Green Up programs, which provide incentives for “green improvements” that realize significant energy and water consumption savings. The LTV is 85%.
“Tampa is one of the top performing apartment markets in the country, with occupancy hovering around 92.5%, and rents increasing on average 5.4% year over year,” said Stanton. “There is immediate realizable upside for the buyer through the implementation of a value-add program.”
Added Robbins, ““Working with Insula, a Freddie Mac Select Sponsor, on the financing/acquisition side, we were able to maximize loan economics while creating a highly structured loan aligning with their capital improvement costs and re-stabilization period. Providing a flexible structure will allow them to re-position and re-capitalize the asset, as they’ve successfully done in the past. It was an overall great team effort between the seller, buyer and Berkadia’s sales and debt groups.”
Located at 3660 East Bay Drive, Columns at East Bay is an upscale, 196-unit, garden-style apartment community. Built in 1986, the property is situated on 14.196 acres and consists of 15 two-story buildings. It offers 120 one-bedroom units and 76 two-bedroom units. Extensive community amenities at this pet-friendly property include a resort-style swimming pool and spa, clubhouse, lighted tennis court, children’s playground, outdoor entertainment area, planned activities, barbecue grills, 24-hour emergency maintenance, on-site laundry, recreational room, and car care center. As of February 2017, the property was 94.39% occupied with market rents of $930 per month.
About Berkadia®:
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, 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.
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