Berkadia Arranges Financing for July Residential’s Acquisition of 536-unit Carmel Creek Apartments

Berkadia announces it has secured financing for July Residential’s acquisition of Carmel Creek, a 536-unit apartment community in Houston, Texas. Senior Managing Director Mitch Sinberg, Associate Director Matthew Robbins and Senior Analyst Abigail Beauchamp of Berkadia Boca Raton secured the financing on behalf of July Residential.

This marks July Residential’s sixth property acquisition in the Houston MSA; last month, the multifamily investment firm closed on the acquisition of a five-property, 1,275-unit portfolio in Houston with debt also procured by Berkadia.

Freddie Mac provided a 10-year, fixed-rate loan, with four years interest only and a 70 percent loan to value.

“This asset fit well with July Residential’s criteria and they continue to assemble a critical mass of apartments in Houston, which is exceeding performance expectations in just about every category,” said Sinberg. “As in-migration and job growth continues, Houston’s apartment occupancy rate is on track to surpass year-end 2019 figures by mid-2022, and annual effective rent growth in the metro could approach 6 percent by then – a rate not seen since 2015.”

According to Berkadia’s 3Q2021 Report Card for Houston, effective rents rose 9.9 percent YTD to $1,207 per month, occupancy rose 220 basis points YTD to 95.2 percent, and 27,917 units were absorbed YTD – roughly three times more than originally forecasted.

“We’re elated to take possession of such a property in a market that we believe so strongly in its potential, and even more so happy to be able to do another deal with Berkadia running the debt,” said July Residential co-founder Avihai Daniell.

Located at 6000 Hollister Rd in Houston, Carmel Creek was built in 1982 and consists of one- and two-bedroom apartments ranging from 518 to 1,193 square feet. Apartments feature in-unit washer/dryer, walk-in closets, and hardwood floors. The pet-friendly community has a pool, fitness center and laundry facilities. Carmel Creek is located in the Brookhollow/Inwood neighborhood, approximately 20 miles northwest of Downtown Houston The primarily residential neighborhood is located close to amenities and less than 20 minutes from The Art Institute of Houston, the University of St. Thomas and University of Houston, Downtown.

July Residential, a New York-based investment firm, co-founded by Avihai Daniell and Isaac Pinto, specializes in the development, acquisition and operation of superior multifamily opportunities in the most desirable markets in the U.S. The company’s portfolio currently includes garden-style, mid-rise and mixed-use/new build multifamily projects throughout the U.S. Since the Covid-19 pandemic, July has acquired well over 1,500 units, and are continuing to pursue opportunities throughout the Sunbelt and Mid-Atlantic in the multifamily sector.

About Berkadia®:

Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit