The Residences at Veranda Park has 150 apartments and over 48,000 square feet of commercial space
Orlando, Fla. (June 1, 2020) – Berkadia announces it has secured a $31.5 million loan for the acquisition of The Residences at Veranda Park, a mid-rise, mixed-use property composed of 150 apartments and 48,385 square feet of commercial space in Orlando, Florida. Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia’s Miami office sourced the financing on behalf of borrower, a Delaware vehicle managed by Westside Capital Group, a diversified real estate investment firm based in Miami led by Jakub Hejl. Westside acquired the property for $45 million.
Berkadia originated and Freddie Mac purchased the 10-year, fixed-rate loan with partial interest only at a 70 percent loan to value.
“While the buyer for this property was selected in late February, this is likely one of the first true ‘pandemic acquisitions’ as the borrower was required to adjust to Freddie Mac’s heightened Debt Coverage Ratio for the Orlando Market and new requirement for a Debt Service Reserve,” said Foschini. “We worked with Freddie Mac to provide a full understanding of the property’s commercial income to ensure it was fully considered from a credit perspective. The deal faced numerous in-the-moment closing hurdles, all of which we successfully navigated by working closely with both Freddie Mac and Westside, ultimately achieving an exceptional loan with an extended interest-only period that accommodates the return goals of the buyer.”
Added Jakub Hejl, Westside’s Founder and President, “The Residences at Veranda Park is a high-quality property with strong in-place cash flows and further opportunities for value creation. The property conforms to our investment thesis focused on well-amenitized buildings and strong long-term growth fundamentals. We see Orlando as a strategic market for other Westside’s investments despite the short-term economic shocks related to the COVID-19 pandemic, and we want to build a long lasting relationship with the city and its residents.”
Built in 2008 and located at 2121 South Hiawassee Road, The Residences at Veranda Park is a five-story mid-rise property on 2.56 acres featuring one-, two- and three-bedroom units averaging 1,239 square feet. Community amenities include two fitness centers, two spas, extensive common areas including a clubhouse and lobby, and 482 parking spots within the building. The MetroWest property neighbors the Publix-anchored MetroWest Village and the MetroWest Golf Club with immediate frontage to Hiawassee Road.