Berkadia Secures $155M for Texas Multifamily

Berkadia, New York, arranged $155.1 million for eight Texas multifamily properties.

In Houston, Berkadia Managing Director Ed Kim arranged $130 million to refinance H7, a portfolio of seven Class B multifamily properties. The floating-rate bridge loan from a commercial mortgage-backed securities lender closed on May 1.

The 2,000-unit portfolio’s average occupancy exceeded 93 percent at closing, Kim said. “The solid rent growth and stable occupancy in the Houston Class B multifamily space, coupled with a decline in interest rates, has fueled an increase in apartment refinances,” he said.

Berkadia also secured $25.1 million for Faudree Ranch Apartments, a 300-unit Odessa community. Berkadia South Florida Senior Managing Director Charles Foschini and Managing Director Christopher Apone secured the JP Morgan commercial mortgage-backed securities loan for borrower Faudree Ranch Apartments LLC.

Foschini said the property was 90 percent occupied at closing. The five-year fixed-rate loan included two years of interest-only amortization at a 67 percent loan-to-value ratio.

“The borrower is a long-time client with 1031 capital making a well-timed acquisition in America’s energy corridor,” Foschini said. He noted that the purchase was “well below replacement cost and at a very high cap rate.”

Built in 2014, Faudree Ranch Apartments is a 300-unit community with one-, two- and three-bedroom units renting for $1,220 to $2,200 per month. The Odessa Country Club and The University of Texas of the Permian Basin are nearby demand drivers.