More than a year after JSB Capital Group secured a $212 million loan on a Doral apartment complex, the firm wiggled out of the floating interest rate debt by recapitalizing, partly through an equity infusion.
JSB scored a $219.9 million refinancing on The Landmark South, at 6055 Northwest 105th Court. It consists of $154.1 million in senior debt and $65.8 million in preferred equity, according to a news release from the borrower’s broker. Freddie Mac issued the senior financing, with JLL Real Estate Capital servicing the debt. Pensam provided the equity.
The deal reduces JSB’s capital cost and extends to five years its term on the senior debt. The previous loan had about two years left, according to Simon Banke, part of the JLL team that represented JSB.
“The blended interest rate between the new senior loan and the equity is less expensive than the interest rate on their previous financing,” said Banke, though he declined to disclose the blended interest rate.
Banke worked with JLL’s Jesse Wright and Brian Gaswirth on the deal.
JSB bought the 631-unit Landmark South for $255 million in 2021, taking out the original $212 million loan at the time, according to records. The purchase ranked as the third biggest South Florida multifamily sale in 2021.
The apartment complex consists of three eight-story buildings developed in 2017 and 2021 on 6.7 acres, records show.
JSB has invested over $2.5 billion in equity across real estate asset classes and has purchased more than 47,000 apartment units in the U.S, according to the release. The firm, a successor firm to GMF Capital, has offices in New York, Miami and Baltimore. It is led by Jay Lobell.
The Federal Reserve’s interest rate hikes over the past year have slowed the booming real estate market in much of the U.S. and especially in South Florida, which experienced an influx of residents and companies during the past two years.
Commercial real estate owners with floating rate loans rushed to purchase interest rate caps, though some may have been shut out of that option, as costs surged last year.
In some cases, preferred equity has stepped in to the rescue.
Hen Shoval of Miami-based Pensam, the Landmark South preferred equity investor, said in the release that the firm has closed more than 100 similar deals in recent years.