Dealmaker: Berkadia Closes Retail and Multifamily Deals in N.Y., Ariz.

Berkadia, New York, closed a $15.4 million loan for Latham Crossing, a 100,000-square-foot retail property in Latham, N.Y.

Managing Director John DiCrocco of Berkadia’s New York City office closed the 10-year, fixed-rate loan through a conduit lender.

“There were several challenges in this deal, including a short-term ground lease that needed to be re-negotiated, an extremely short time frame before the borrower went into maturity default and maximum proceeds for a deal in a challenging submarket,” DiCrocco said.

DiCrocco said the 75 percent loan-to-value ratio financing had 1.25 times debt-service coverage. The loan included two years of interest-only payments.

PetSmart and Staples anchor the fully occupied Latham Crossing center at 609 Troy Schenectady Road.

In another deal, Berkadia represented Aerie Development LLC when it sold 184-unit Tucson, Ariz. apartment property Avilla Preserve to M3 Multifamily, Santa Barbara, Calif. for $27.6 million.

Berkadia Senior Managing Director Art Wadlund and Associate Clint Wadlund of the firm’s Tucson office completed the sale on October 9. The sale reflects a per-unit price of $150,000.

“This property is located in a submarket with very few Class A assets,” Art Wadlund said. “As such, M3 Multifamily will be able to capitalize on the pent-up demand for luxury apartments.” He said the buyer likes the property’s low-density one-story layout and its recent construction.

Clint Wadlund said asking rents at top-tier properties in the area reach $1,300 per month, “[so] there is certainly investment demand for this product despite the low level of supply available for sale.”