Dealmaker: Berkadia Secures $22M for Wisconsin Multifamily

Berkadia, New York, secured $22 million for 306 West Luxury Apartments, a Class A multifamily property in Madison, Wis.

The firm’s Chicago office also represented seller 306 West Main LLC in the transaction. Managing Director Alex Blagojevich, Senior Director Ralph DePasquale and Director Parker Stewart marketed the asset for seller 306 West Main, LLC.

Berkadia Managing Director John Oharenko and Directors Jeanne Peck and Michael Slovitt secured 10-year life insurance company financing for buyer 306 Apartments LLC. The 52 percent loan-to-value ratio loan priced at 3.51 percent.

“As the main hub for the University of Wisconsin system and the state capital, Madison sees high investor appetite and also very few non-student housing trades of quality assets with over 75 units,” DePasquale said. He noted the sale price represented one of highest per-unit prices for non-student apartments in Madison.

Peck said the borrower needed to close within 30 days to take advantage of a drop in the bond market by locking rate on a one-page term sheet the day they were awarded the deal. “Our team educated the lenders on Madison’s economic drivers and vibrancy, despite it not being a major market, resulting in a range of competitive quotes from institutional lenders for this acquisition,” she said.

Built in 2015, 306 West Luxury Apartments includes 172 one- and two-bedroom units.

Berkadia also sold Carlton Heights Villas, a 70-unit multifamily property in Santee Calif., for Carlton Heights Villas LLC. CVG Properties paid $13 million–$185,700–per unit for the 1979-vintage property at 9705 Carlton Hills Boulevard.

Berkadia Director Kyle Pinkalla and Managing Director Ed Rosen closed the deal. The property was 96 percent occupied at closing.