PHILADELPHIA – April 10, 2019 – Berkadia announced the $18.5 million financing of Bayview Court, a 202-unit apartment community in Somers Point, New Jersey. Managing Director Jim Badolato of Berkadia’s Philadelphia office structured the financing on behalf of Haddonfield, New Jersey-based The Streamwood Company. The transaction closed on March 21.
The Freddie Mac OptigoSM loan offers an 11-year fixed rate term under the Lease-Up program, which enables borrowers to lock in a rate and fund a loan before the collateral is fully stabilized. The property was 75 percent occupied at closing with steady leasing velocity.
“Most of the lease-up loans we’ve done were for new developments, but in this situation our client is completing a full-scale renovation,” said Badolato. “Having seen the Streamwood team turn similar assets before, we were able to craft a permanent loan solution for Bayview Court in advance of stabilization. The loan supports the improvement of workforce housing in an underserved rental location.”
“We brought in the Berkadia team early on in 2015 to see the ‘before’ on this project and then again after the City of Somers Point partnered with us on revitalizing this community. The goal has been to restore it physically, and more importantly, to reinvigorate it as a desirable community that brings value to the city and its residents,” said Scott Leonard, a principal at The Streamwood Company. “We started our construction renovations on the exterior and then moved to the interiors, completely remodeling the kitchens and bathrooms and installing new fixtures and appliances, including new in-unit washer and dryers.”
The Streamwood Company, led by principals Jack and Scott Leonard, purchased Bayview Court in 2014, recognizing the upside opportunity. The property was in need of engaged management and significant maintenance but was supported by strong local employment drivers and high rental demand. Upon acquisition, Streamwood established an on-site presence and implemented a full-scale repositioning, including rebranding to its current name, Bayview Court. The scope of the renovation budget is in excess of $50,000 per unit.
The City of Somers Point has also been closely involved with the project, offering a tax pilot in exchange for Streamwood’s commitment to the project.
“I can remember a time when this property was considered a desirous place to live. But, as the years passed, the condition of the property seemed neglected, and this led to a situation where many of its residents did not feel connected to the rest of our population,” said Somers Point City Council President Sean T. McGuigan. “Streamwood has done a terrific job in turning this property around. We look forward to the project’s completion, since it is providing another place in our community that residents can be proud to call their home.”
Located at 555 Shore Road, Bayview Court has been undergoing substantial renovation, which has encompassed a full exterior refresh of the existing 1960s-vintage brick buildings, including new windows, doors, balconies, trim and roofs and new landscaping, parking lot, property lighting and signage. Unit interiors are being entirely gutted, delivering brand new units to tenants upon completion. To date, 50 percent of interior unit renovations have been delivered, and the remainder will be completed on a rolling basis going forward. A new pool, cabana and fire pit area will be ready for tenants by summer.