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Business Observer Friday, Aug. 18, 2017 1 year ago

Naples apartments sell for $67 million

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Advenir Inc., an Aventura-based multifamily investment firm whose portfolio contains assets valued at $2.3 billion, has acquired the Aventine at Naples apartments for $67 million.
by: Kevin McQuaid Commercial Real Estate Editor

Advenir Inc., an Aventura-based multifamily investment firm whose portfolio contains assets valued at $2.3 billion, has acquired the Aventine at Naples apartments for $67 million.

Advenir financed the purchase of the 350-unit complex with a $52.2 million, fixed-rate loan from Freddie Mac arranged by Berkadia Commercial Mortgage LLC.

Berkadia Senior Managing Director Charles Foschini says Advenir was able to qualify under Freddie Mac's “green rewards program,” which provides favorable financing terms for energy saving initiatives, because it is planning a series of lighting upgrades.

The 9300 Marino Circle property, which was completed in 2002, had been owned by an affiliate of Baltimore-based Continental Realty Corp. since 2013. Continental acquired the property for $44.3 million.

Foschini, who arranged the partial interest-only debt with a seven-year term on behalf of the borrower together with Chris Apone, says Advenir is one of Freddie Mac's “preferred borrowers.”

The financing represents a 70% loan-to-value ratio, he adds.

“Most of the time Freddie Mac would not provide green rewards financing to a property of the early 2000s vintage, but it recognized the quality of the buyer and their plan to add value by upgrading the property,” says Foschini, whose firm is the result of a joint venture between Warren Buffett's Berkshire Hathaway and Leucadia National Corp.

“Green rewards in this case saved them 30 to 40 basis points, which gave them a competitive advantage because their cost of borrowing was less,” he adds.

Aventine at Naples, where rents range from $1,146 to $1,595 monthly, features amenities such as a swimming pool and spa, fitness center, dog park, internet cafe and lighted tennis court.

At the time of the Advenir transaction, it was 89% occupied.

“Selling Aventine now made great sense for our investors,” says Continental Realty CEO JM Schapiro. “But I also see a long runway of growth in that market.”

Continental continues to own the Sierra Grande Apartments, the Colonnade on Fifth and the Gateway of Naples shopping center in Collier County.

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