A multifamily tower with some affordable units near the Miami River obtained a $14.36 million recapitalization despite hurdles posed by the coronavirus pandemic.

First & Sixth Apartments, on the northeast corner of Southwest First Street and Sixth Avenue, obtained the loan with help from investment banker and loan servicer Berkadia with Freddie Mac as purchaser. The deal closed June 19.

This is a 10-year, fixed-interest financing with the first three years being interest only.

The financing represents 62% loan to value.

Eastern Atlantic Cos., based in Miami, last year finished the building and still owns it through affiliate 35 SW 6th Avenue LLC.

First & Sixth is the first tower developed under Miami 21 zoning that allows for a bigger building with more units in exchange for including some affordable apartments.

The 14-story building has 100 units with 80 of them market rate and 20 affordable in response to the affordable housing crisis that's one of the biggest issues in Miami-Dade County.

The monthly rent for a 350-square-foot studio ranges from $1,200 to $1,300, according to multifamily listing website apartments.com. The rent for a one-bedroom unit from 705 to 819 square feet ranges from $1,600 to $2,030; and for a two bedroom from 1,200 to 1,139 square feet ranges from $2,100 to $2,550.

The units have floor-to-ceiling windows and some of the amenities are a sky deck with a pool, a gym, bicycle storage, a garage and Wi-Fi in common areas.

The building is on a 13,866-square-foot lot at 35 SW Sixth Ave., which 36 SW 6th Avenue purchased in June 2018 for $1.6 million, according to the county property appraiser's office.

The Miami River District in recent years has experienced redeveloping mainly with multifamily towers filling the demand created by workers in the nearby growing Health District and justice system district. They are home to Jackson Memorial Hospital, University of Miami Health System, the Richard E. Gerstein Justice Building and the Miami-Dade State Attorney's Office.

First & Sixth tower also is close to Miami's booming Brickell Financial District.

Berkadia senior managing director Charles Foschini and managing director Christopher Apone in Miami arranged the financing on behalf of Eastern Atlantic.

The duo joins others working remotely to close deals amid the pandemic.

"Working through the pandemic is never easy, but with cooperation of the borrower and lender we were able to get it done," Foschini said. "Freddie Mac's support of this loan with its understanding of the nuances and their exceptional terms will bring long-lasting benefits to the investors and tenants alike."

Instant Insights /

Miami River Multifamily Tower Secures $14.4M Recapitalization

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