Dealmaker: Berkadia Secures $32M for Virginia Beach Multifamily

(Illustration courtesy of Berkadia)

Berkadia, New York, secured $31.8 million in construction/permanent financing through the Virginia Housing Development Authority for Vanguard Landing, a 128-bedroom community to be developed in Virginia Beach, Va.

Senior Managing Director John Reed of Berkadia Richmond and Managing Director John Richards of Berkadia Norfolk secured the financing for non-profit developer Vanguard Landing Inc., Virginia Beach. The deal closed on April 29.

The 40-year loan featured a 6.25 percent permanent interest rate and a 40-year amortization schedule.

Reed said this is a “first of its kind” development in Virginia and thus the first property financed by Virginia Housing. “This fact alone presented some challenges for all parties involved throughout a very lengthy process. The fact that we were able to get this done testifies to the worthiness of this project, in addition to the perseverance of the Berkadia, Vanguard Landing and Virginia Housing teams,” he said.

“At the end of the day, this development allowed Virginia Housing to fulfill one of its missions, to provide housing for individuals with intellectual and developmental differences and will be the first of its kind in Virginia, and we are proud to present this opportunity to them,” Richards said.

Located at 2016 Princess Anne Road, the property will have convenient access to area retail, employment centers and healthcare. This first phase of Vanguard Landing is being developed at a cost of nearly $40 million and will feature The Gathering Point, the main hub and support building for the community with administrative office, class and recreation rooms and a dining hall.