Berkadia arranges financing for acquisition of Frontal Trust’s single-family rental portfolio in Miami-Dade County

Frontal Trust Investment Management acquired a scattered portfolio of 125 single-family homes and condos, mostly in Homestead, with a $17.5 million loan

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Frontal Trust Portfolio SFR South Florida
Berkadia arranged a $17.15 million loan for the acquisition of 125 condos and single-family homes located within Miami-Dade County, Florida.

Berkadia announces it has arranged a $17.15 million loan for the acquisition of 125 condos and single-family homes located within Miami-Dade County, Florida. The majority of the assets are located in Homestead and include 60 townhomes fractured condo townhomes and a scattered mix of 31 condos, 18 townhomes and 16 single-family homes.

Managing Director Brad Williamson of Berkadia Miami and Senior Managing Director Mitch Sinberg of Berkadia Boca Raton secured the financing on behalf of Frontal Trust Investment Management.

Amerant Bank provided the five-year term loan with 2 years interest only with an attractive low interest rate with flexible prepayment, plus a facility to keep growing the portfolio.

Headquartered in Santiago de Chile, Frontal Trust is a growing alternative assets manager with a focus in real estate, private debt, infrastructure and private equity. The company has over $2.5 billion in assets under management in the U.S. and Latin America as of May 2021. With a “boots on the ground” operational foundation with strong sourcing and asset management capabilities, Frontal Trust started investing in the U.S. as an LP in 2017 through a $50 million fund. It opened an office in Miami in May 2020 and shortly after, raised its second fund: a $22 million residential credit fund that originates and buys short-term loans for single-family residential assets in the U.S.

Brad Williamson said, “There has been an increase in demand for single-family rental product throughout the U.S., by both private and institutional investors, however there is not an abundance of capital providers financing this asset type. We were successful obtaining attractive terms from a range of sources including banks to Wall Street capital to maximize our clients’ overall return based on their investment strategy.”

Luis Felipe San Martin, Managing Partner of Frontal Trust U.S., added: “In a hot and fast-moving market like Florida, Berkadia’s network and understanding of the scattered SFR space was key to secure competitive financing terms in a short time frame. These terms allow us to offer an attractive risk/reward profile strategy to our private and institutional investors.”

The properties in the portfolio include:

  • 60 condos (of a total of 114) in Old Biscayne Villas Condominiums, located at 13244 Old Biscayne. Built in 2006, 2007 and 2014, it consists of two- and three-bedroom units across 19 garden-style one floor buildings. Acquisition gives the sponsor 53 percent ownership and control of the HOA.
  • Six three-bedroom condos at Monterey at Malibu Bay, a 125-unit community built in 2005 and located at 920 NE 33rd Terrace.
  • 12 three-bedroom townhomes (of a total of 384 units) at Villas at Carmel, located at 1490 NE 33rd Avenue. Built in 2005/2006, it is nestled within the Malibu Bay community.
  • 18 scattered single-family homes and four townhomes in the Homestead neighborhoods of Bluewaters, Leeward, Keygate, Tennessee Estates, Bimini, Riverside and Waterstone. All are three or four-bedroom assets.
  • One three-bedroom townhome in Cutler Bay, one two-bedroom condo in Pinecrest, and one one-bedroom condo in Coral Gables.
  • 22 condos in Venetian Palms and Village at the Falls in Pinecrest