MIAMI-The Miami office of CB Richard Ellis Capital Markets, a Freddie Mac correspondent, arranged $17.4 million worth of financing for the owner of Cottage Cove I & II, a 470-unit apartment complex in the city of Miami Gardens in Northern Miami-Dade County. The deal closed the first week of May.
The mortgage was originated through Freddie Mac’s Cap ARM program. The terms of the financing include a seven-year term, a 30-year amortization with a two-year, interest-only period, a 56% loan-to-value, and a 3.66% interest rate.
Charles Foschini, vice chairman of CBRE’s Debt and Equity Finance and Institutional Group and other team members arranged the financing for the more than 40-year-old property through Freddie Mac on behalf of ANF Miami Gardens, LLC.
The sponsor, Miami-based TM Real Estate Group, LLC, is led by real estate veterans Mathew Peller and Troy Ballard. Serving as asset managers, work-out specialists and owner representatives, the two assisted in a complicated transaction which involved the former owner, Atherton Newport Investments, an Orange County-California-based multi-family company, which filed for Chapter 11 bankruptcy in January 2008, Citigroup, the equity partner, and New York-based NorthStar Realty Finance Corporation, the original lender. “It took over a year to put the transaction together,” says Foschini.
In order to main its certificate of occupancy, the owners of Cottage Cove I & II will have to do extensive renovations on the buildings as dictated by Miami-Dade County, which mandates that certain building systems pass inspections once a multi-family property becomes 40 years old, says Foschini. The occupancy at the building is over 90%, he says.
Since 2003, CBRE Capital Markets has originated over 817 multi-family transactions totaling over $12.2 billion.
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