Winter Haven, Fla. (June 30, 2020) – Berkadia announces it has secured $7.5 million in financing for the recapitalization of Lakeshore Club, a 50-unit mid-rise apartment property located in Winter Haven, Florida. Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia’s Miami office arranged the financing on behalf of borrower Westside Capital Group, which acquired the property in 2017.
Berkadia originated and Fannie Mae purchased the 10-year, fixed-rate loan with partial interest only.
“This is the third time Berkadia has financed this project in just over three years,” said Foschini. “At each juncture, the borrower added significant value to the asset, benefitting residents and elevating the status of the property. In this most recent iteration, our team executed a permanent loan with an exceptional interest rate, locking in value and cash flow for the term of the investment.”
“We see Winter Haven as a growing market with outsized demographic growth relative to the underlying supply of new housing,” said Jakub Hejl, founder and president of Westside. “We are excited to successfully conclude the first phase of our business plan, and we look forward to starting phase two. We have proven the business model and our data suggests that Winter Haven needs additional modern apartment housing that is attractively priced but also offers the standard, comfort and amenities that residents demand and new development could offer.”
Built in 1985 and located at 1300 S Lake Howard Drive, Lakeshore Club is a five-story mid-rise apartment property featuring one-, two- and three-bedroom units averaging 1,225 square feet. Community amenities include a fitness center, a pool, extensive common areas including a clubhouse and lobby, and nearly 90 parking spots. Upon acquisition, Westside executed a full-scale property repositioning that included adding a new roof, new elevator, installing new building systems, updating common areas, renovated interior units, and adding enhanced security systems and gated parking.
Westside acquired Lakeshore Club in July 2017 for $4.3 million as an assemblage of two sites totaling seven acres. It successfully rezoned and re-parceled the site to create a new 5.7-acre site adjacent to Lakeshore Club that has been approved for a new 190-unit multifamily property at an approximate total development cost of $25 million. Both properties are ideally located within walking distance from downtown Winter Haven, and surrounded by two natural lakes and offer stunning unobstructed water views.