NGKF Capital Markets arranged $33.45 million in financing for two AION Partners multifamily properties: Serrano, a 192-unit garden-style apartment community located in West Palm Beach, Fla., and Park Plaza, a 234-unit apartment complex located in Miami Gardens, Fla.
The loans allowed for the repayment of the existing debt, as well as provide funds to allow the borrower to continue to make improvements to the properties and realize future value. The loans are floating rate with interest only periods.
Serrano offers a mix of one-, two- and three-bedroom floor plans while over 85% are large two-bedroom units, which is unique to the competitive set and the overall submarket. All units offer full size washer/dryers, balconies/private patios, walk-in closets, and are situated in a park-like setting featuring extremely low density (approximately 8 units/acre). Also available to residents is covered parking, a resort-style pool, a recently upgraded fitness facility, and an onsite leasing office with business center.
Park Plaza offers a mix of efficient one-, two- and three-bedroom floor plans. Each unit is furnished with unique architectural designs and offers fully equipped kitchens, ceramic tile entries and walk-in closets. Property amenities include a fitness facility, onsite laundry facility, onsite leasing office and clubroom with a full kitchen. The property is situated in a densely populated area in the northern part of Miami-Dade County and is strategically located within ½ mile of the Golden Glades Interchange, a nexus of five highways and major roads (U.S. Route 441, Florida’s Turnpike, the Palmetto Expressway, SR 9 and I-95). The location provides tenants with virtually unmatched vehicular access to any part of Southeast Florida.
“AION acquired Serrano and Park Plaza in 2010 and, since taking control of the assets, it has strategically reinvested capital to not only renovate and improve the units, but also upgrade many of the common area amenities, thus enhancing the overall tenant living experience,” said Maury Zanoff, a vice chairman with NGKF Capital Markets. “As a result, AION has increased and maintained occupancy levels at 95%+ during its period of ownership.
“AION’s experience and success in the market combined with its institutional quality management and maintenance of both properties were compelling factors for lenders, which ultimately led to offers with the most flexible terms and rate in this competitively bid process.”
The Washington, D.C.-based team of Mr. Zanoff, Joe Donato, Matt Williams and Jamie Leachman arranged the financing.
About AION Partners
AION Partners acts as principal and sponsor of opportunistic real estate investments across the United States. The firm was founded by the principals who built the real estate investment and asset management company DCD America. The AION team has a proven track record of creating value and managing risk through redeveloping, repositioning and managing assets in order to maximize returns to its investors.
The AION executive team’s experience as real estate operators with the ability to structure and execute complex capital markets transactions, provides a competitive edge which allows the company to take advantage of pricing dislocations on hard assets and debt. Led by Siraj Dadabhoy and Michael Betancourt, AION’s executive team has extensive experience in property acquisition and management, development, capital raising, debt restructuring and foreclosure.
For more than a decade, the AION team has structured private partnerships, joint ventured with private equity funds, insurance companies and family offices to purchase and operate 1.7 million square foot of office space, over 3,500 residential units and dozens of retail properties. The assets are located across the United States with a focus on the New York to Washington D.C. corridor. AION has acquired properties through purchase of fee interests, recapitalizations and purchase of distressed debt as a means to control the real estate. For more information regarding AION Partners, please refer to its website www.aionpartners.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.