Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has arranged the sale and financing of Carriage Hills Apartments, a 260-unit apartment complex in Pensacola, Florida.
Michaelson Group, which also purchased a 104-unit Tampa Bay community for $10 million earlier this summer, has acquired the property for $22 million in an off-market transaction from The Hallmark Cos.
The acquisition involved a $16.5 million, 12-year fixed-rate loan, with six years of interest only at a 75 percent loan-to-value.
Berkadia facilitated both sides of the transaction, with Cole Whitaker of Berkadia’s Orlando office and David Etchison of the Panhandle office represented the seller, and Mitch Sinberg and Matt Robbins of the company’s South Florida office, along with Bob Falese and Jeremy Lynch of the Philadelphia office, secured financing through Freddie Mac on behalf of the buyer.
Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation, Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA.
The company is among the top Freddie Mac and Fannie Mae multifamily lenders.
Berkadia owes its origins to GMAC Commercial Mortgage Corporation, which was acquired in 2009 by Kohlberg Kravis Roberts & Co., Five Mile Capital Partners LLC, and Goldman Sachs Capital Partners. Christened Capmark Financial, the company had $10 billion of originations in 2008 and a servicing portfolio of more than $360 billion before running into bankruptcy in October 2009.
In a deal approved by the bankruptcy court, Capmark sold its mortgage loan and servicing to the newly formed Berkadia in a deal worth $515 million.
The deal brought Berkshire into the heart of the commercial loan serving business, and the company has one of the largest commercial real estate servicing portfolios.
© 2018 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.