Charles Foschini and Christopher Apone.

A Miami-based Berkadia team worked in a competitive lending market to secure a $41.9 million loan for the purchase of an apartment complex in Central Florida.

Berkadia, a joint venture created by Berkshire Hathaway and Leucadia National Corp., closed the loan on behalf of Harbor Group International LLC.

The Norfolk, Virginia-based real estate management and investment company paid $64 million for the apartment community at 7261 Crossroads Garden Drive near Orlando.

Developer Trammell Crow Residential Co., a Dallas-based developer and seller of multifamily properties, built the residential community in 2016 and sold it in May to Harbor Group.

Originally named Alexan Crossroads, the complex’s name was changed to Linden Crossroads after the acquisition.

Berkadia senior managing director Charles Foschini, managing director Christopher Apone and senior analyst Lourdes Carranza-Alvarez secured the loan in a deal that closed May 7.

With 314 units at Linden, the sale breaks down to $203,821 per apartment, and the loan breaks down to $133,503 per apartment.

The Orlando area is growing, which in turn creates competition for obtaining a loan.

“The Orlando marketplace is very dynamic, both with population and job growth, so there was a lot of competition for the loan because people are big believers in Orlando and the story there and in Florida generally,” Foschini said.

But there were other challenges.

The property was 92 percent occupied when the loan closed, but it wasn’t fully stabilized. That means certain concessions given to residents still were in effect.

“Many times to lease a property, as the property is new into the market, you’ll get concessions in terms of free rent and things like that. So the property wouldn’t become fully stable until the rents rolled at least one time,” Foschini said.

Although loans for these types of deals generally would come from Freddie Mac and Fannie Mae, Berkadia secured this loan from a life-insurance company, Foschini said. New York Life made the five-year loan and gave the borrower the option for two one-year extensions.

“Freddie Mac and Fannie Mae are exceptional lenders. … But they are not always the best lender for a specific circumstance,” Foschini said. “Life companies have some specific advantages at being able to lock the rate at application, in being incredibly flexible when they like a deal and being able to shape a loan that is unique for each circumstance.”

The loan covers 65 percent of the acquisition cost.

Linden has one-, two- and three-bedroom units. The rent for a 695-square-foot one bedroom ranges from $1,305 to $1,515, according to the Linden Crossroads website. The rent for a two-bedroom unit ranges from $1,600 to $2,325, and three bedrooms rent for $2,350.

Amenities include a saltwater pool, an outdoor kitchen with a pizza oven, valet trash service, a gym and outdoor fireplaces.

Harbor Group made an earlier purchase in the area, taking over a similar asset in late 2017 with help from Berkadia.

Last Nov. 14, Berkadia closed on a $65.7 million loan for Harbor Group to purchase the Linden Audubon Park apartment complex at 990 Warehouse Road in Orlando. The Bank of America loan covered 68 percent of the $97.1 million price to buy the asset from Crp-Grep Elan Audubon Owner LLC.

The limited liability company is an affiliate of The Carlyle Group, a Washington-based private equity asset manager and investment company, state records show.

For its part, Trammell, the developer and seller of Linden Crossroads, has developed and sold other multifamily complexes throughout Florida. In February 2010, it developed Alexan Henderson Beach in Destin and sold it in 2016. In May 2009, it developed Alexan Solmar in Fort Lauderdale and sold it in 2012, according to its website.

Foschini declined to disclose the interest rate for the Linden loan.

“What was unique about the transaction is that we were able to structure a very aggressive deal at a time when there’s tremendous interest-rate volatility in the market, and one of the advantages of our team is being very nimble with various sources of capital.”