Savanna, a New York-based real estate private equity and asset management firm, has completed anto own and recapitalize Atlantic Point, a 795-unit, class-A garden apartment and townhome complex on Long Island.
Savanna and Pantzer Properties Inc. partnered to refinance the existing debt with a new seven-year $169.6 million loan comprised 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.
The Atlantic Point community was completed in 2004 and is situated on 117 acres between New York City and the Hamptons. The complex features several amenities, including four swimming pools, three tennis courts, an indoor basketball court, and a state-of-the-art fitness center/recreational facility.
“This is a class-Aproperty in a core location with a great in-place property management team,” Nicholas Bienstock, managing partner of Savanna, said in a statement.
As part of the recapitalization, leverage was reduced by approximately $32 million, and Savanna and Pantzer Properties each contributed new equity to the joint venture. Pantzer Properties acquired the asset in phases in 2003 and 2004 from a joint venture between Trammell Crow and JP Morgan. Panco Management, a wholly-owned affiliate of Pantzer Properties, will continue to run the property management of the asset.
“This was a creative recapitalization of Atlantic Point, which has provided us with the capital to continue to improve the property while putting in place very attractive long-term debt that will secure the stability of this asset for years to come,” Jason Pantzer, co-president of Pantzer Properties Inc., said in a statement.