Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the recent financing of Egate Apartments, a garden-style multifamily property in Salt Lake City. Senior Managing Director Kevin Kozminske of the St. Louis office and Managing Director Art Tuverson of the San Clemente, California office secured the 35-year permanent refinancing on behalf of Utah-based EGate Partners LLC. The deal closed July 26.
The loan, secured through the HUD FHA 223(F) program, features a fixed interest rate at 3.40 percent.
“We are excited to get Egate Apartments closed,” said Kozminske. “It was an excellent transaction for HUD providing work force housing in the market.”
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.