Not everyone who’s part of the New York to South Florida exodus is a tech CEO buying a $20 million mansion, and not every residential real estate investor has to default to a condo.
Berkadia announces it has arranged $37 million in refinancing for The Enclave at Delray Beach, a 224-unit garden style apartment community in Delray Beach, Florida—and senior managing director Charles Foschini and managing director Christopher Apone of Berkadia Miami explains what the deal means to the market (the pair secured the financing on behalf of MSP Enterprises).
“South Florida’s multifamily market continues to strengthen with continued in-migration and a relatively low cost of living,” Foschini says. “With low interest rates and a rallying workforce that will further support demand, the property’s dynamics and market fundamentals made it a solid investment opportunity for the borrower to retain in its portfolio. While always a formidable choice, not every transaction is best suited to an agency execution. By running a full and exclusive process, we were able to generate multiple options for this borrower and fully exploit movements in the market to their benefit. Working collaboratively, we were able to secure a quote from our correspondent life company that not only allowed us to lock rate at application but at an ideal time in the market resulting in an outsized benefit in rate and interest only over every other interested lender.”
Famed investor Warren Buffett and his company Berkshire Hathaway helped broker the deal after forming a partnership to establish Berkadia with Jefferies Financial Group, a leading commercial real estate company. Berkadia was established in 2009 as a joint venture between Buffett’s Berkshire Hathaway company and Jefferies Financial Group, a leading commercial real estate company. Buffett, 90, recently announced his successor at Berkshire Hathaway, which did not alarm investors with the company’s stock sitting at $420,000 at the time of posting.
The apartment-style community built in 2000 features one, two and three-bedroom units offering modern tile backsplashes, spacious walk-in closets and a private balcony or patio for each unit. Shared community amenities include a tennis court, business center and gated entry. Located at 14768 Enclave Lakes Drive, the property is less than 10 minutes away from I-95 and is close to main tourist attractions like the Japanese Gardens and Bocaire Country Club.