Berkadia Arranges $67M for Federal Apartments Affordable Housing Redevelopment in Fort Lauderdale

Berkadia secured $67 million in construction-to-permanent financing for Federal Apartments, a planned 164-unit affordable housing redevelopment in Fort Lauderdale, Florida, the firm announced Oct. 5, 2026. Senior Managing Director Tim Leonhard and Senior Director Melissa Koppel of Berkadia Affordable Housing arranged the financing on behalf of Boca Raton-based developer MRK Partners.

Financing Structure for Federal Apartments

Berkadia provided the financing through its Private Placement Bond Program. The $67 million comprises $50 million in tax-exempt debt and $17 million in taxable debt, equal to roughly $408,500 per planned unit.

Before closing the construction-to-permanent loan, Berkadia also provided an acquisition bridge loan to support MRK Partners' purchase of the property while the permanent capital structure was being arranged.

The project will operate under a regulatory agreement and includes a Section 8 Housing Assistance Payments (HAP) contract, Private Placement bonds and 4% Low-Income Housing Tax Credits. A Broward County Housing Finance Authority notice had initially contemplated up to $30 million of multifamily housing revenue bonds for the project, which originated as a 164-unit acquisition-and-rehabilitation proposal sponsored by MRK Partners. The final $50 million tax-exempt component reflects a later or revised structure.

Redevelopment Replaces 1950s-Era Housing

The redevelopment will replace aging 1950s-era housing with new affordable homes. The property is located at 821 W. 11th Avenue in Fort Lauderdale, and public materials reference scattered-site components within a broader development area along NW 11th Avenue.

Upon completion, Federal Apartments will deliver 164 affordable units serving very low-income households earning between 30% and 50% of Area Median Income (AMI). The project will also preserve and extend the property's Section 8 HAP contract through 2046.

"This transaction reflects a strong collaboration among MRK Partners and the City of Fort Lauderdale to advance much-needed affordable housing in the market," said Leonhard. "By combining tax-exempt and taxable financing with the project's rental-assistance and tax-credit structure, the team was able to create a tailored capital solution that supports the delivery of quality, long-term affordable housing for Fort Lauderdale residents."

Sydne Garchik, president of MRK Partners, said the project brings scattered-site housing together into one community. "By bringing scattered-site housing together into one thoughtfully designed community, we're able to create shared spaces that support connection and long-term stability," Garchik said. "Working closely with Berkadia and the Housing Finance Authority of Broward County, we were able to structure a creative solution that preserves long-term affordability while delivering high-quality new housing for local families."

South Florida Multifamily Market Context

South Florida multifamily vacancy was approximately 7% in the first half of 2026, while affordable and workforce apartments were leasing near the industry benchmark of 95% occupancy. Median apartment rent stood at $2,277 in June 2026, about 20% below the June 2022 pandemic peak.

A first-quarter 2026 market report recorded a 6.5% vacancy rate, roughly 14,993 units of annual absorption and average asking rent of $2,289 per unit. New leases across South Florida slightly exceeded completions in the 12 months through the second quarter of 2026, at 13,774 new leases versus 12,751 completions.

Broward County also has substantial future supply, with an estimated 7,500 units under construction or in the pipeline and about 2,000 units expected to deliver in 2026 in suburban Class A submarkets. Federal Apartments targets households at 30% to 50% of AMI, a different demand pool from those market-rate properties.

Role of Subsidy and Tax-Credit Capital

The capital stack pairs tax-exempt bonds, taxable debt, 4% tax credit equity and Section 8 rental assistance. The HAP contract extension through 2046 provides a long-term affordability framework for the property's low-income households.

Berkadia Affordable Housing is a financial services platform that combines mortgage banking, investment sales and tax credit syndication, serving clients nationally.

Sources

Berkadia: Federal Apartments, Fort Lauderdale, FL | Financed by Berkadia 2026