Savanna, Panzer Partner to Close $196M Multi-Family Transaction on Long Island
- Mar 14, 2012
By Barbra Murray, Contributing Editor
With the finalization of a $196 million transaction, Savanna has become a partner with Pantzer Properties in the ownership of Atlantic Point, a 795-residence multi-family community on Long Island, in Bellport, N.Y. The deal leaves Savanna with a majority interest in the Class A asset, which the partners have recapitalized the tune of $169.6 million.
Properties like Atlantic Point, once known as Alexan Brookhaven, don’t come along every day. “It took over 10 years for this property to be entitled, planned and built, so it is not an asset that can be easily replaced,” Andrew Fichte, senior associate at Savanna, told Commercial Property Executive.
Encompassing garden-style apartments and townhomes spanning 117 acres, Atlantic Point sits in a premier location within close proximity to the Hamptons and an hour outside of Manhattan. Pantzer came into full possession of the asset soon after its completion in 2004, acquiring it in a two-phase acquisition from a joint venture involving the developer, Trammell Crow Residential, and JP Morgan.
Savanna and Pantzer, both of which threw in an unspecified — albeit substantial — amount of new equity into the partnership, achieved the refinancing of the multi-family complex with a new seven-year loan consisting of a $138.6 million Freddie Mac CME first mortgage issued by Berkeley Point Capital and a $31 million mezzanine loan originated by Berkshire Property Advisors.
Lenders aren’t exactly throwing money around these days, but if there is anything that catches their attention, it’s a premier asset with sound long-term potential. “Atlantic Point has strong sponsorship and is a quality asset,” Fichte noted. “Lenders view recently constructed Class A, fully occupied residential properties, in infill locations, as good risk adjusted returns in the market today.”