Miami Beach, FL – March 15, 2011 – (RealEstateRama) — The Federated Companies, a leading vertically integrated national real estate investment and development firm, has recently closed on the acquisition of a mortgage from KeyBank that is secured by Bayside Village in Portland, Maine. The asset is located in downtown Portland between the Old Port and Back Cove on 132 Marginal Way and consists of 100 units and 400 bedrooms and operates as a student housing complex that was completed in 2008. The Federated Companies leveraged the bank’s desire to reduce their exposure to defaulted notes before year-end and closed on the acquisition on December 29, 2010 at a cost of approximately $23k per bed. The acquisition represented a tremendous value for The Federated Companies as they acquired the new construction property at a cost of $.30 cents on the dollar of total project costs. The Federated Companies was able to successfully navigate and negotiate with the defaulted Borrower and the mezzanine lender who held a 2nd mortgage on Bayside Village to relinquish any rights to the asset and received a deed in lieu at closing.
The five-story building is situated on a 1.33 acre site and provides for a total of 100 apartment units that each contain four bedrooms and two bathrooms. The buildings ground floor is used for covered parking and contains two commercial spaces.
The Federated Companies’ Chief Executive Officer, Dung Lam, “believes this acquisition was significant not only because we were able to acquire a trophy asset in a high barrier to entry market with 3% overall market vacancy, but it also demonstrates our ability to work with multiple Lenders and negotiate a tremendous value for our Company and Partners.” The Federated Companies plans to stabilize the asset by establishing a partnership with the local universities and the community. In addition, the Company has plans to enhance the product offering by adding 1 and 2 bedroom apartments.
About The Federated Companies
The Federated Companies is a vertically integrated national real estate investment and development firm with offices in Boston, Massachusetts and Miami, Florida. Founded in 1999, the company has excelled as both a merchant developer and owner/operator of its assets. The Company has an exceedingly successful track record in both residential and commercial real estate. The firm’s management team has effectively developed and managed over 7,500 units of residential housing with an aggregate value of over $1.5 billion. The Federated Companies has also successfully developed retail property for many of the nation’s largest restaurants, retailers and financial institutions. The company is a member of the United States Green Building Council and a federal Energy Star Partner. For more information on the Federated Companies, please visit our website at www.federatedcompanies.com
Vice President of Marketing
The Federated Companies