Berkadia Secures $94M in Construction Financing

Berkadia, New York, arranged $93.7 million in construction financing for mixed-use and multifamily properties in Wheeling, Ill. and Christiansburg, Va.

In Illinois, Paul Matusiak, Senior Director in Berkadia’s Chicago office, arranged $70.2 million in construction and permanent financing for mixed-use development Wheeling Town Center. The Section 221(d)(4) HUD-insured loan closed on June 6.

Berkadia secured the financing for borrower WTC Residential Development LLC. The first mortgage is both a 25-month construction and a fully amortizing 40-year permanent loan with a 3.70 percent fixed interest rate.

“Wheeling Town Center is a transit-oriented development that will attract strong interest among renters due to its overall quality, its proximity to Chicago and the numerous community amenities that are all within walking distance of the property,” Matusiak said. “Through HUD, we were able to provide an attractive loan that funded both the construction of the multifamily building and specific infrastructure improvements.”

Matusiak said Wheeling Town Center will include 301 rental apartments when completed.

Berkadia also secured $23.5 million in construction financing for The Adams at Peppers Ferry, a multifamily property to be built in Christiansburg, Va. Senior Managing Director David Blake of the firm’s Richmond, Va., office arranged the 221(d)(4) loan through Berkadia’s partnership with HUD. Denstock Peppers Ferry LLC received the 40-year fixed-rate loan at a 4 percent interest rate.

The Adams at Peppers Ferry’s location in Christiansburg positions it on the perimeter of Blacksburg’s growing Virginia Tech university campus. The 168-unit property is close to the region’s largest concentration of retail and the LewisGale Hospital Montgomery.