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Berkadia Arranges Programmatic Capital Partner for Capstone Communities’ BFR Projects
Berkadia has secured a programmatic capital partner to help Birmingham-based Capstone Communities develop build-for-rent communities.
Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick of Berkadia JV Equity & Structured Capital set up the programmatic partner – a publicly traded REIT – as the capital partner for Capstone’s pipeline of BFR communities. Berkadia sourced a total of $37 million of equity for projects in Port St. Lucie, FL, and Myrtle Beach, SC.
“The BFR space is flush with institutional capital right now, but identifying the right programmatic partner for Capstone Communities was our goal as we wanted a group that would have the appetite and ability to be a reliable partner now and down the road,” said Kirkpatrick.
According to Berkadia, BFR communities are one of the fastest growing trends in the multifamily real estate segment. The company further states that BFR concepts generate approximately 20% to 30% rental rate premiums compared to traditional multifamily apartments.
Photo Credit: Capstone Communities
- ◦Development
- ◦Financing
