LONG ISLAND, N.Y. — Savanna has completed a $196 million investment for a majority stake in the 795-unit Atlantic Point, a garden-style apartment and townhome complex located on Long Island. The company will own and recapitalize the property in a venture with Pantzer Properties.
Pantzer Properties purchased the property in phases between 2003-2004 from a joint venture between Trammell Crow and JP Morgan. Atlantic Point, which was completed in 2004, includes four swimming pools, three tennis courts, an indoor basketball court and a fitness center.
“We look forward to our new partnership in owning this premier property with Pantzer Properties and we are pleased to have had Berkshire and Berkeley Point assist us with our financing needs,” said Nicholas Bienstock, managing partner of New York-based Savanna, in a prepared statement. “This is a Class A multifamily property in a core location with a great in-place property management team.”
The partners refinanced the existing debt on the property with a new $169.6 million, 7-year 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.
Leverage was reduced by approximately $32 million as part of the recapitalization, and each party contributed significant new equity to the joint venture.
“We are very pleased to have a joint venture with Savanna,” said Jason Pantzler, co-president of Pantzler Properties, in a prepared statement. “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.”
Panco Management, a wholly owned affiliate of Pantzer Properties, will continue to manage the property.
— Savannah Duncan