Dealmaker: Berkadia Originates $250M for Multifamily Properties
Berkadia, New York, secured $220 million in financing for two multifamily properties totaling 2,153 units: The Woods in San Jose, Calif., and Arcadia Run in Manassas, Va.
Senior Managing Director Mitch Thurston and Senior Director Andy Ahlers secured the loans through Berkadia’s Freddie Mac program.
Berkadia arranged floating-rate loans that replaced maturing debt on The Woods and construction bridge financing on Arcadia Run, Thurston said. He noted that both loans included interest-only payments.
Berkadia also secured financing for Fairlane Woods Apartments, a 288-unit apartment property in Dearborn, Mich., near Ford Motor Co.’s world headquarters. Senior Director Paul Matusiak secured the $30.8 million fixed-rate loan through HUD for sponsor Marquette Co., Naperville, Ill. The 35-year loan refinanced existing debt and provided funds for future capital needs.
Matusiak said The Marquette Co. originally developed the property as executive housing for Ford. The 320,000 square foot property on 27 acres had 94 percent occupancy at closing.
Berkadia recently represented Su Casa Properties, San Rafael, Calif., when it sold Barrington Regent, a Class B apartment community in Phoenix, to Curtis Capital Group, Bellevue, Wash. The $11 million sale–$88,709 per unit–closed on May 18.
Berkadia Senior Managing Director Mark Forrester, Managing Director Ric Holway, Senior Director Dan Cheyne and Associate Tom Wolff facilitated the sale.
“The proximity to downtown Phoenix and the unique property features of this mid-rise asset made Barrington Regent a particularly attractive investment,” Forrester said, noting that Curtis Capital Group sought a strong value-add opportunity in midtown Phoenix. “In addition to upgrades to the property’s interior and exterior, Curtis Capital Group plans to rebrand the community.”
Built in 1980, the 124-unit property is less than a mile from the Metro Light Rail and one mile from the Downtown Phoenix Corridor. Top employers in the area include both city and state governments and TGEN Bioscience Research.
