IRVINE, CA—In its second large-scale transaction with Starwood Capital Group thus far in 2017, Berkeley Point Capital provided the Greenwich, CT-based private equity firm with $2.22 billion in acquisition financing as part of its purchase of Milestone Apartments Real Estate Investment Trust, which closed this past Friday. In the largest financing it has arranged to date, Berkeley Point utilized Freddie Mac's ARM product, providing 10-year floating rate financing for the portfolio.
Berkeley Point provided financing on 74 of the 78 multifamily assets included in Starwood Capital's privatization of Milestone REIT. The assets covered by Berkeley Point's financing were built between 1974 and 2016, and contain nearly 23,000 units. The majority are located in Texas and Florida, with the rest scattered across Arizona, California, Colorado, Georgia, Maryland, North Carolina, Tennessee and Utah.
Berkeley Point and Starwood utilized Freddie's Green Advantage product, which enables borrowers to qualify for better pricing and higher proceeds when energy-saving improvements are in the picture. A Berkeley Point spokeswoman tells GlobeSt.com that Starwood Capital's participation in the Green Advantage program, which Fannie introduced last summer, was based on its post-acquisition plans for the portfolio. When combined with a portion of the portfolio's rents being affordable at 60% of AMI, the Green Advantage participation allowed 50% of the loan balance to be exempt from the GSE's production cap.
Managing directors Charlie Haggard and Kevin Mignogna and assistant VP Peter Kurzeka led the financing for Berkeley Point out of the Irvine, CA office. This past February, the team provided Starwood Capital with $250 million-plus in acquisition financing for the purchase of an 11-property multifamily portfolio from Holland Partners. For that transaction as well, Berkeley Point utilized Freddie's ARM product.
Built between 1985 and 2002, the 11-property Holland portfolio contains 2,136 units, located in Washington, Oregon, Colorado and Arizona. Due to affordability of rents, 25% of the loan balance qualified as affordable and exempt from Freddie's production cap.
Berkeley Point has worked extensively with Starwood Capital over the past few years as the company has grown into one of the country's largest multifamily owners. Even prior to the Milestone REIT privatization, Starwood Capital owned 67,000 apartment units in the Sunbelt region alone.
In another large-scale apartment transaction for this client, Berkeley Point in January 2016 arranged $1.4 billion in Freddie Mac financing for Starwood Capital in connection with its acquisition of a 25-property portfolio, which totaled 8,597 units located in California, Colorado, Florida, Maryland and Virginia. Haggard and Mignogna led the group arranging that financing as well.
IRVINE, CA—In its second large-scale transaction with Starwood Capital Group thus far in 2017, Berkeley Point Capital provided the Greenwich, CT-based private equity firm with $2.22 billion in acquisition financing as part of its purchase of Milestone Apartments Real Estate Investment Trust, which closed this past Friday. In the largest financing it has arranged to date, Berkeley Point utilized
Berkeley Point provided financing on 74 of the 78 multifamily assets included in Starwood Capital's privatization of Milestone REIT. The assets covered by Berkeley Point's financing were built between 1974 and 2016, and contain nearly 23,000 units. The majority are located in Texas and Florida, with the rest scattered across Arizona, California, Colorado, Georgia, Maryland, North Carolina, Tennessee and Utah.
Berkeley Point and Starwood utilized Freddie's Green Advantage product, which enables borrowers to qualify for better pricing and higher proceeds when energy-saving improvements are in the picture. A Berkeley Point spokeswoman tells GlobeSt.com that Starwood Capital's participation in the Green Advantage program, which Fannie introduced last summer, was based on its post-acquisition plans for the portfolio. When combined with a portion of the portfolio's rents being affordable at 60% of AMI, the Green Advantage participation allowed 50% of the loan balance to be exempt from the GSE's production cap.
Managing directors Charlie Haggard and Kevin Mignogna and assistant VP Peter Kurzeka led the financing for Berkeley Point out of the Irvine, CA office. This past February, the team provided Starwood Capital with $250 million-plus in acquisition financing for the purchase of an 11-property multifamily portfolio from Holland Partners. For that transaction as well, Berkeley Point utilized Freddie's ARM product.
Built between 1985 and 2002, the 11-property Holland portfolio contains 2,136 units, located in Washington, Oregon, Colorado and Arizona. Due to affordability of rents, 25% of the loan balance qualified as affordable and exempt from Freddie's production cap.
Berkeley Point has worked extensively with Starwood Capital over the past few years as the company has grown into one of the country's largest multifamily owners. Even prior to the Milestone REIT privatization, Starwood Capital owned 67,000 apartment units in the Sunbelt region alone.
In another large-scale apartment transaction for this client, Berkeley Point in January 2016 arranged $1.4 billion in
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.