Berkeley Point Capital Finances Florida Apartment Buy

BRADENTON, FL-Bethesda, MD-based Berkeley Point Capital LLC reports it has closed on a $10,875,000 loan that finances the acquisition of Braden Lakes Apartments, a 264-unit garden-style apartment community here.

Officials with Berkeley Point say the financing was provided to an unnamed sponsor. Prior to the financing, the class B/C property was bank-owned for several years. At a 97% physical occupancy, combined with growing fundamentals, the property has noteworthy upside potential. Additionally, the appraised value currently exceeds the purchase price, Berkeley Point Capital officials note.

Financing was arranged under Freddie Mac's Capital Markets Execution Adjustable Rate program. This transaction was structured as a seven-year, 2.58% adjustable-rate loan, with one-year interest-only, followed by a 30-year amortization schedule. The loan has a one-year pre-payment lockout, and can either be repaid at a 1% premium or converted to longer-term fixed rate financing. The interest rate cap was placed by third party provider, which allowed for a shorter-term initial coverage period than Freddie Mac's embedded cap option, which had recently been discontinued. Berkeley Point Capital's Brian Kochan, director in its Bethesda office, led the transaction for the Berkeley Point team.

“We are pleased to once again work with this sponsor to help meet their investment strategy needs. This transaction provided the best possible combination of pre-payment flexibility, very low floating interest rate, and the ability to re-leverage the asset after any planned renovations,” states Jim McDevitt, president at Berkeley Point Capital.