Dealmaker: Berkadia Secures $75M to Refinance Michigan Multifamily

Berkadia announced it secured $75.1 million in combined financing for three garden-style multifamily properties in Michigan: Dearborn View Apartments, Bedford Square Apartments and Delta Square Apartments.

Director Aaron Moll secured these loans for Valleytree Partners from Berkadia’s Detroit office.

Dearborn View Apartments at 572 Tobin Drive in Inkster received a $31.5 million, 10-year Fannie Mae Structured Adjustable-Rate Mortgage loan with five years of interest-only payments and an interest rate below 2.70 percent. The deal closed on December 8. Dearborn View has one-, two- and three-bedroom floor plans with a swimming pool, a fitness center and a sundeck.

Moll noted Valleytree has created significant value at Dearborn View during its ownership. “They have greatly improved the housing for their tenants and their investment value,” he said. “I am sure Bedford Square and Delta Square will be no exception as Valleytree will implement their already proven business plan to create a better community for their residents while optimizing returns for their investors.”

Bedford Square Apartments, located at 1685 Bedford Square Drive in Rochester Hills, includes one- and two-bedroom floor plans. Moll secured a $35.9 million non-recourse loan from a bridge lender. The loan provided the borrower with 80 percent loan-to-cost and three years of interest-only payments. The deal closed on December 22.

Delta Square Apartments at 5332 W. Michigan Avenue in Lansing received $7.6 million through a 10-year loan from Freddie Mac, McLean, Va. The variable interest rate loan priced below three percent and included three years of interest-only payments.