Loci Capital & Maifly Development Secure $92 Million in Construction Financing to Build New Apartments in Tampa
Berkadia sourced the debt and preferred equity partner
TAMPA, Fla. (January 12, 2023) – Berkadia announces it has arranged $92 million in debt and preferred equity financing for the construction of Tampa Heights Apartments, a new 321-unit, mixed-income Class A apartment community in the Tampa Heights neighborhood, one of the fastest growing infill areas within Tampa, Florida. Construction is scheduled to begin in Q1 2023 and complete in late 2024. As part of its negotiations with the city, the community will include 32 income-qualifying units for residents earning no more than 80 percent of the area’s median income.
Managing Directors Michael Weinberg and Rebecca Van Reken and Associate Director Alec Fox of Berkadia Central & North Florida structured the capital stack on behalf of the sponsor, a joint venture between Tampa-based Loci Capital, a real estate private equity firm that focuses on real estate acquisitions, development and operations in the southeast United States, and Maifly Development, a Pennsylvania-based, full-service real estate development firm that focuses on the development of high-quality market rate communities throughout the eastern and southern United States.
U.S. Bank provided the senior debt and Marble Capital provided the preferred equity.
Weinberg commented, “Tampa is one of the hottest commercial real estate markets in the country right now. It has tremendous job and population growth plus it performs really well as a leisure destination. Nearly every asset class is performing well throughout the region but it’s led by the multi-family market.”
“The vision and local efforts of Loci Capital resulted in this incredible site, which is both highly walkable and will have amazing views of downtown. Together with Maifly, I’m excited to see this partnership deliver another quality residential project to the Tampa area,” said Van Reken. “We are thrilled to have helped the capital stack come together for them and make this project a reality, despite the challenging financing environment,” she added.
Located on a 2.45-acre site at the northeast corner of North Florida Avenue and East 7th Avenue, Tampa Heights Apartments will offer one-, two- and three-bedroom units that range from 512 square feet to 1,393 square feet. Individual unit amenities will feature smart home technology, modern kitchens with stainless steel appliances, light granite countertops and wood cabinets, European-inspired bathrooms with contemporary fixtures and large tubs, ceiling fans in the living room and bedrooms, large walk-in closets, full-size washers and dryers, and downtown and water views. Community amenities will feature multiple outdoor lounging and park areas, a resort-style rooftop pool with cabanas, firepits and grilling stations, a full-service fitness center, a coffee bar, meeting rooms, bike storage, a dog park and secure package storage.
“Berkadia’s ability to execute on the capitalization of our Tampa Heights Multi-family development in a turbulent capital markets environment is evidence of their strong relationships and local market expertise,” said Casey Wilson, Managing Principal of Loci Capital. “Additionally, Loci and our equity investors continue to have strong conviction in the project, which was 2.0x oversubscribed for the common equity and included a number of prominent investors in the Tampa area.”
The apartment community is located just 10 minutes from Downtown Tampa, the Ybor City Historic District, University of Tampa and the Westshore Office Market; 20 minutes to Tampa International Airport and Busch Gardens; and 30 minutes to Downtown St. Petersburg and MacDill Air Force Base.
A groundbreaking to mark the beginning of the development is scheduled for February, with construction expected to take approximately two years. “We invest all over the country, but we are based in Tampa and many of us were born and raised here,” said Michael Phillips, CEO and Managing Partner of Loci Capital. “After aggregating this site over the past 18 months, I’m proud that we were able to team with first class partners to capitalize this great project in our own backyard.”
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