Berkeley Point Inks $45M Multifamily Loan

PALM BEACH, FL—Berkeley Point Capital recently provided a $44.795 million construction loan for a multifamily project in Boynton Beach, FL. Berkeley worked with the Federal Housing Administration (FHA) to execute the insured loan for Compson Associates.

Compson plans to build a 338-unit mid-rise, class A multifamily community with the financing, which was arranged under HUD's Section 220 Mortgage Insurance Program. That program provides integrated non-recourse construction and permanent financing for rental housing in urban renewal areas.

“FHA continues to be a key source of capital for construction financing,” Steve Wendel, executive managing director at Berkeley Point, tells GlobeSt.com. Berkeley Point's Robert Cantizano of its Bethesda, MD office led the team.

The financing was structured to be a fully amortized loan based on a 3.18%, 40-year, fixed-rate note, following the 20-month, interest only construction period. Davis Bacon Wages will be required.

As for the multifamily asset, Compson Place will sit in the heart of a larger 86-acre, mixed-use development known as Renaissance Commons, also developed by the Compson. Located within one mile of I-95, restaurants, shopping, and employment surround the area.

When completed, Compson Place will be the newest apartment community in the Boynton Beach area. Anthony Comparato, chairman and principal of Compson, tells GlobeSt.com, “With completion slated for the 2nd Quarter of 2014, Compson Place Apartments will be a great addition to this mixed-use community.”

The multifamily property will feature one- and two-bedroom units with high-end appliances, granite kitchen and bathroom countertops, 24-hour security patrol in the building and garage-parking. Community amenities include two in-ground swimming pools, bath house, a clubhouse equipped with WI-FI lounge, coffee bar, exercise room and business center.