Copperline buying two Broward multifamily projects for $70M, issuing bonds on Israeli market
UPDATED Sept. 26, 3:30 p.m. Copperline Partners is adding to its South Florida portfolio, paying $70 million for two multifamily projects in Broward County, and has raised $19 million in bonds on the Israeli market to help finance the purchase, The Real Deal has learned.
Copperline, based in West Palm Beach and Freeport, New York, published a notice Friday on the Tel Aviv Stock Exchange about the deal and its plans to issue bonds. The company, owned by the Schlesinger family, said the two properties are located in Coral Springs and Sunrise, and total 478 residential units with 441,950 square feet. The sale is expected to be completed on Sept. 30, according to the notice.
Copperline said that one of the properties is 310 units in 32 two-story and three-story buildings, and the other is 168 units in nine three-story buildings.
The names and addresses were not noted, but CoStar data shows Harbor Inn Apartments at 801 Harbor Inn Drive, built in 1986, and Marsh Harbour Apartments at 8798 Northwest 38th Street, built in 1988, match the descriptions, respectively. Both are owned by M.S.L. Property Management. The complexes are two of four the company owns, all in Broward County, according to its website.
Copperline said in its notice that it received a loan for an unnamed bank for $55 million, and intends to invest $9.5 million to renovate the properties.
A call to Adam Schlesinger at Copperline’s West Palm Beach office was not immediately returned.
Yossi Levi, vice president of InFin, told TRD that the Israeli financial firm facilitated the issuance of the bonds over the weekend to help finance the purchase of the Broward properties. Copperline raised about $19 million dollars (NIS 72 million) on the Israeli bond market. The bonds were priced at 104.9 percent of the initial asking price, due to high demand, he said.
Copperline Partners specializes in multifamily real estate management and development, focusing on Florida, New York and Connecticut, according to its website. Its portfolio in South Florida includes the Mayfair Hotel and Spa, the Gulfstream Hotel in Lake Worth and the Brazilian Court Condominium Hotel in Palm Beach.
The company has looked to the Israeli market for capital in the past. Last year, Copperline raised $85 million through a bond offering on the Tel Aviv Stock Exchange, as U.S. real estate firms continue to look to the Israeli bond market as a source of capital.
The multifamily market has been heating up in South Florida. During the first half of the year, investors and developers sold and purchased more than $4 billion worth of apartments, many of them in suburban areas.
The Real Deal researcher Eda Kouch contributed to this report.