Despite challenging conditions, Berkadia’s Florida debt team closed more volume in 2024 than the year prior
Berkadia, a leader in the commercial real estate industry, announces that its Florida Mortgage Banking platform closed approximately $4 billion in transactions in 2024 – exceeding 2023 production volume by more than a billion. Berkadia Florida’s investment sales platform also closed more than $1.4 billion in multifamily and land transactions across the state.
Last year, the Mortgage Banking team closed $3.96 billion in commercial property loans in 107 transactions throughout Florida and beyond. These included several nine-figure construction loans for landmark condominium developments in South Florida.
Led by Senior Managing Director Mitch Sinberg of Berkadia Boca Raton, Berkadia Florida Mortgage Banking leveraged its longstanding relationships with the GSEs, along with life companies, banks and debt funds, to provide competitive financing for an array of local and national clients.
“Despite debt market volatility and limited product for sale, Berkadia Florida managed to close nearly $4 billion in mortgage originations last year,” said Sinberg. “I credit this to our team’s longstanding relationships with the most prolific developers in Florida, our unique access to diverse capital sources, and the favorable conditions that continue to make Florida an attractive place for investing in residential property.”
Notable transactions from 2024 included:
·$400 million construction loan through Madison Realty Capital on behalf of Related Group/BH Group for Six Fisher Island
·$328 million construction loan from Bank OZK on behalf of Related Group/GTIS for Baccarat Residences Miami
·$97 million construction loan through Goldman Sachs Private Bank on behalf of The Mahaffey Apartment Company for The Carlton at Robinson Gateway near Bradenton
·$100 million takeout loan through Churchill Real Estate for The Gardens Residences in North Miami on behalf of Omega Real Estate
Look forward, Sinberg is cautiously optimistic about the multifamily market in 2025. Despite the pressure of higher-for-longer interest rates, inflation and value dislocation, demand for rental housing remains elevated, and deal flow will likely pick up in the second half of 2025 as investors seek to put their capital to work.
Other forecasts for Florida:
·Florida apartment fundamentals remain strong; continued job and population growth, along with high barriers to homeownership, will sustain demand; rent growth, which stagnated last year, will turn positive in most major metros by end of 2025.
·Distressed sales are expected to rise as high-leverage, short-term loans mature on value-add and development projects. “Extend and pretend” will wind down – will see more permanent loan workouts and bridge-to-bridge loans.
·State-level policies like the Live Local Act and new condo reserve rules will continue to reshape the landscape, triggering new developments as well as possible condo buyouts.
Berkadia was recognized as the #1 Freddie Mac Lender by Volume in 2024, making it Freddie Mac’s top partner for the fourth consecutive year, and the #2 Fannie Mae DUS Lender by Volume in 2024. Berkadia delivered $13.45 billion in loans with Freddie Mac and Fannie Mae (“the multifamily GSEs”).
About Berkadia®:
Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets.
To learn more about Berkadia, please visit www.berkadia.com.