Month: April 2020

BayBridge Real Estate Capital Brokers $102 Million Loan

Post author By Melissa Gracey
Post date April 30, 2020

Multifamily construction project closed during challenging

economic environment

NEW YORK, April. 30, 2020 – BayBridge Real Estate Capital, an affiliate of Berkowitz Pollack Brant Advisors + CPAs, today announced it brokered a $102 million construction transaction which closed this week.

Plantation-based developer Invesca will use the loan provided by New York-based Madison Realty Capital to complete Pixl, a virtual reality themed mixed-use project in Pompano Beach.

Jay Miller, managing director of BayBridge Real Estate Capital, commented, “We are thrilled to have completed this transaction at such a challenging time in our economy. We believe it will be one of the last big construction transactions until the economy bounces back.

“Our team worked closely with the developer to complete a create financing deal that met everyone’s goals.”

Jay Miller and Spencer Miller of BayBridge Real Estate Capital brokered the deal.

Planned for completion in early 2022, Pixl is located at 4400 S. Sunrise Blvd., and will include 330 loft-style apartments with smart-home features.

About BayBridge Real Estate Capital

The BayBridge Real Estate Capital team has a long history of bringing institutional capital to markets across the U.S.

An affiliate of Berkowitz Pollack Brant Advisors + CPAs, BayBridge helps businesses, developers and investors find the financing they need for a broad range of commercial real estate projects, including acquisitions, construction and value-add development.

The firm has offices in Miami, Ft. Lauderdale, Boca Raton, West Palm Beach and New York City.

Media Coverage

The Real Deal – Invesca scores $102M construction loan for two SoFla apartment projects

Post author By Melissa Gracey
Post date April 29, 2020

https://therealdeal.com/miami/2020/04/29/invesca-scores-102m-construction-loan-for-two-sofla-apartment-projects/

Invesca scores $102M construction loan for two SoFla apartment projects

The loan will be used for a 214-unit project in Pompano Beach and a 330-unit development in Plantation

The Real Deal MIAMI /

April 29, 2020 09:45 AM

By Keith Larsen

Invesca scored a $102 million loan from Madison Realty Capital for two South Florida multifamily projects during the coronavirus pandemic.

Plantation-based Invesca secured the loan from the New York-based lender to finish construction on a 214-unit apartment project in Pompano Beach and to begin construction on a 330-unit multifamily development in Plantation, according to a release.

The Pompano Beach property is 1.6 acres at 452 East Atlantic Boulevard, and is 98 percent complete. With two buildings connected by a skybridge, it will total over 450,000 square feet when finished. The development also includes 12,000 square feet of retail space and 362 parking spaces, according to the release.

The Plantation property will span 12.3 acres at 4350 West Sunrise Boulevard. It will include eight, nine-story buildings with 720,000 square feet. The development will also consist of a 30,000-square-foot commercial building, a 1.1-acre office property, 10 townhomes that are already completed, and 37 approved additional townhome lots, according to the release.

Jay Miller of BayBridge Real Estate Capital brokered the transaction.

Madison Realty Capital is becoming more active in South Florida’s real estate market, especially in Broward and Palm Beach counties.

In December, the company provided a $210 million construction loan for Fort Partners’ Four Seasons Hotel and Private Residences in Fort Lauderdale.

In July, the lender provided a $225 million construction loan to Penn-Florida for The Residences at Mandarin Oriental in Boca Raton.

In total, Madison Realty Capital has completed about $12 billion in equity and debt transactions since 2004, according to its website.

Media Coverage

South Florida Business Journal – Invesca Obtains Construction Loan for Pixl

Post author By Melissa Gracey
Post date April 29, 2020

https://www.bizjournals.com/southflorida/news/2020/04/29/invesca-obtains-construction-loan-for-pixl-apts.html

By Brian Bandell – Senior Reporter, South Florida Business Journal

Ivesca overcame challenges of obtaining construction financing during an economic downturn by nabbing a loan for two Broward County projects.

The $102 million construction loan will help the Plantation developer put the finishing touches on the Envy apartments in Pompano Beach and begin work on Plantation’s Pixl apartments, which will have a virtual reality theme.

Madison Realty Capital affiliate 4350 W. Sunrise Blvd 1 LLC awarded the mortgage to Pixl Development and Envy Development, both affiliates of Invesca.

“We were halfway through this transaction when the financial world started to fall apart,” Invesca CEO Christopher Longsworth said. “Josh Zegan, Mark Simon and Mark Gormley worked with us around the clock to create sophisticated solutions to the constant obstacles that were presented. For a lender of this size to be agile enough to pivot and navigate through the real time challenges, was really impressive and the reason this deal closed in these uncertain times. The skill and market intelligence that Jay Miller brought to the table in arranging the financing was second to none.”

Miller, the managing director of BayBridge Real Estate Capital, said many banks have been reluctant to make construction loans during the Covid-19 pandemic. Banks are holding onto their cash liquidity as deposit accounts fall because their clients are losing money, he said.

Madison Realty Capital had a ton of available cash and was confident in Longsworth because of his successful track record as a developer,’ Miller said.

“Envy is an absolutely spectacular property and Pixl will be the same,” Miller said “Everything he brings is off the charts. If you are going to do a deal in an economic downfall, the kind of person you’d want to make it with his Chris.”

Located at 4400 S. Sunrise Blvd., Pixl will have 330 apartments. They will range from 800 to 1,622 square feet, including some loft-style units with 18-foot ceilings. All units will have smart home features. The amenities will include a virtual reality concierge and automated package delivery.

Pixl should be completed in the first quarter of 2022. It’s near Strada, a for-sale townhouse community Invesca built several years ago.

The mortgage also replaced the original $28 million construction loan for Envy, which is nearly completed. It will have 213 apartments and commercial space on Atlantic Avenue.

Invesca is the architect and general contractor for both projects.

“This will be one of the last meaningful construction loans done for a while,” Miller said.

Bylines

Market Outlook April 9, 2020

Post author By Melissa Gracey
Post date April 9, 2020

Over the past few weeks there has been a tremendous amount of economic uncertainty that has turned the real estate capital markets upside down. There have been 2,600 borrowers representing $50 billion of Commercial Mortgage Backed Security (CMBS) loans that have asked for reprieve on their April mortgage payments. This metric doesn’t consider agency debt, bank debt, life insurance debt or all of the other lending channels. We are truly in unprecedented times.

With commercial operating accounts being drawn down at a record pace, bank depository rates have dropped significantly. These banks are now trying to hold on to liquidity so they can honor their existing commitments for future funding. This has created spillover issues in the rest of the capital markets.

The lenders that have levered their positions with repo lines or warehouse lines are finding these instruments frozen and margin called. In addition, debt funds that rely on selling a senior interest in their loans to get economic efficiency no longer have a market of buyers.

With all of this being said there still is capital that is being deployed in the market. There is a stable of lenders that are looking at special situation deals. These lenders are looking to provide short term financing solutions to clients that are backed into a corner. Fixed rate financing options are still available. Options exist for assets where we can demonstrate that the cash flow is stable even in these unstable times. This money has gotten more expensive by about by roughly 1%.

Right now, cost efficient capital for any construction, transitional assets or short-term bridge financing is on hold. With the CLO market at a stop and the lack of availability to lever loans, this type of financing is currently extremely limited.

When the world is able to go back to work and businesses start to open, the real estate market can assess how many tenants are paying rent and how many mortgage payments are missed. This information will lead us to what real estate values are.

We think that when we get to this point, we will see the CLO and CMBS bond buyers become active again quickly. We also think that banks will be gaining deposits again and with the Fed lift of the depository ratios, the banks will begin lending again. We also think that this downturn is going to activate parts of the equity markets. For the past two years we have seen yields tighten and we had an increase of debt vs. equity. Expect to see that pendulum swing back.

At BayBridge Real Estate Capital, we are constantly obtaining market information and data. We are helping clients and prospective clients walk through the nuances of the capital markets that impact their deals and future pipelines.

If you have a special situation or critical need, please reach out. We will do all we can to help you solve the problems that are arising in these unprecedented times.

Feel Free To Call Us :

646-213-7561

Email Us :

info@baybridgerec.com

Our Address :

485 Lexington Ave.
Suite 302
New York, NY 10017