Dealmaker: Berkadia Secures $400M Plus for Portfolios
Berkadia, New York, arranged two loans totaling $366.7 million for two portfolios consisting of 39 seniors housing properties, as well as $30 million for a retail property in Texas and $16 million for a multifamily property in California.
Managing Directors Heidi Brunet and Christopher Fenton of Berkadia’s Seniors Housing and Healthcare Group originated financing for Brookdale Senior Living, who will use the loans to refinance existing debt on the properties. Brunet and Fenton secured a $226.4 million, 10-year loan through Berkadia’s Fannie Mae Program for a portfolio of 21 properties. The portfolio, which has an average occupancy of 90.6 percent, features 1,924 units in total and consists of 5.7 percent independent living, 15.9 percent memory care and 78.4 percent assisted-living units.
They also closed a $140.3 million, seven-year loan through Berkadia’s Freddie Mac Program for a portfolio of 18 properties. The portfolio, which consists of 1,190 units in total, includes 22.9 percent memory care and 77.1 percent assisted-living units. Average occupancy was 87.8 percent at time of closing.
The portfolio properties are located across 17 states including California, Illinois, New York, North Carolina, Texas and Washington.
Berkadia also originated $29.8 million in financing for Denton Center, a retail property in Denton, Texas. Managing Director Joseph Hevey Jr. of the Dallas office secured the 10-year, fixed-rate loan through Goldman Sachs.
The borrower, RPI Denton Center Ltd. will use the full-term, interest-only loan to refinance existing debt on the property and for expansion of Movie Tavern, a major tenant who plans to double its square footage and number of screens in 2016. Loan terms include a 4.5 percent interest rate.
Located at 500 West University Drive, Denton Center currently consists of 314,157 square feet and rests on more than 34 acres. The property is 95 percent occupied; existing tenants include Kroger Signature, Planet Fitness, Drug Emporium, Sally Beauty Supply and Movie Tavern.
“This transaction combined attractive real estate–given strong tenant performance and close proximity to local universities–and competitive financing,” Hevey said.
Denton Center is one mile from Texas Women’s University and three miles from the University of North Texas.
Berkadia also arranged a $16 million loan for acquisition of The Steinhart Hotel and Apartments, at 952 Sutter St. in San Francisco. Managing Director Nick Cassino worked with the borrower, Mosser Companies, to secure the floating-rate loan through Berkadia’s proprietary lending platform.
The two-year loan is interest-only during the initial term and has an option to extend. The loan to value was 50 percent.
Built in 1910 in the Nob Hill neighborhood of San Francisco, The Steinhart Hotel and Apartments is within proximity to the Union Square area of the city, and offers one- and two-bedroom accommodations with furnishings. Unit amenities include WiFi, kitchens or kitchenettes and full dining rooms in select units. Communal amenities include a patio, a barbeque and a library room.
