Dealmaker: Berkadia Secures $49M for Multifamily

Berkadia, New York, secured $48.6 million in Fannie Mae and Freddie Mac financing for multifamily properties in Florida and Arizona.

In St. Petersburg, Berkadia Senior Managing Director Jeffery Kinney secured $29.5 million in Fannie Mae funds for Brandywine Apartments, a 477-unit garden-style property. The borrower was GMC Properties, Jacksonville, Fla.

The 12-year interest-only loan closed on May 30.

Kinney said GMC created significant value since purchasing the property. “The Fannie Mae refinance allowed the client to return some capital to their investors and lock in a long-term loan with a fixed interest rate that will help secure solid returns to the investors for years to come,” he said.

Berkadia also closed $19.1 million in Freddie Mac financing for Tucson garden-style property Enclave at the Foothills. HSL Properties, Tucson, received a 10-year loan with five years of interest-only payments at a 75 percent loan-to-value ratio. The deal closed on May 31.

Berkadia Managing Director Ed Kim said HSL acquired the property in early 2017 and obtained a floating-rate Freddie Mac Green Up loan through Berkadia. “Over the course of 12 months, HSL was able to significantly improve the property’s operations and cash flow,” he said. “This allowed them to refinance the loan and repatriate their equity.”

In Virginia Beach, Va., Berkadia sold 458-unit Mariner’s Cove Apartments for BDMG Inc., Pikesville, Md. Seminole Trail Properties, Charlottesville, Va., paid $52.1 million for the property on May 31.

Berkadia Senior Directors Alan Meetze and David Hudgins closed the deal. “Mariner’s Cove stands as a value-add play for the new ownership and with a location near Virginia Beach Town Center, the asset has a terrific upside,” Meetze said. “The buyer has already commenced renovations, and Mariner’s Cove will be significantly transformed in the next 12 months.”