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Berkadia

Berkadia Appoints Andy Wimsatt Senior Managing Director and Head of Berkadia Hotels & Hospitality

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, named Andy Wimsatt Senior Managing Director and Head of Berkadia Hotels & Hospitality.

Wimsatt will be based in the DC Metro office and will report to EVP – Head of Capital Markets and Production Hilary Provinse. Wimsatt joined Berkadia on July 17.

“We’re thrilled to have Andy join Berkadia and lead the Hotels & Hospitality team. Andy brings decades of expertise and leadership experience in the hospitality sector, which will augment and complement Berkadia’s national platform of institutional, client-driven investment advisors, and mortgage bankers,” Provinse said. “Over the last three years, the team has strategically grown through the addition of senior hotel talent from other leading capital markets platforms.”

Prior to joining Berkadia, Wimsatt served as Managing Director at Eastdil Secured, where he focused on hotel equity and debt placement services. Over the course of his 30-year career, he has been involved in over $15 billion in transaction volume.

“Berkadia is well known for its unrivaled culture, and I am incredibly excited to be a part of the team,” Wimsatt said. “I’m joining an outstanding group of professionals who share a commitment to delivering exceptional client service while continuously expanding our footprint.”

Berkadia Hotels & Hospitality combines best-in-industry innovation, knowledge, and experience with the most comprehensive suite of products and services, backed by relentless customer service and support to empower clients to capitalize on the right opportunities at the greatest value. The group serves clients across the country, offering a full set of advisory, investment sales, underwriting and loan origination services and products including Life Company, Proprietary Bridge Lending and Capital Markets Advisory Services.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), 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.

© 2023 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.

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Berkadia

Berkadia Partners with Rabbet

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has formed a partnership with Rabbet, the leading provider of construction finance software, to double its servicing capacity.

Berkadia’s adoption of Rabbet’s platform aligns with their commitment to long-term investments in people and technology. With Rabbet, Berkadia FHA/HUD has doubled servicing capacity, improved processing times, and developed insights to better advise customers.

“Rabbet is committed to providing the tools to service even the most complex areas of construction finance, including HUD lending,” said Will Mitchell, CEO of Rabbet. “We are excited to partner with Berkadia to streamline their processes, increase efficiency, and better serve their customers.”

Berkadia Vice President of FHA Construction Ryan Duff, added, “This partnership is a key step in our efforts to grow our FHA construction lending business. By leveraging Rabbet’s technology, we are able to significantly increase our capacity to service this important market segment.”

“Our partnership with Rabbet, a member of Berkadia’s BeEngaged network, has allowed us to collaborate on long-term initiatives, and implement solutions that deliver excellent service to our clients,” said Berkadia Senior Vice President of FHA and Seniors Housing Finance.

Rabbet’s HUD servicing solution is the first and only HUD-focused solution of its kind. This technology allows HUD lenders to read forms like the 92448 and generate the 92403 and 92451 forms which are distinct to HUD. Rabbet’s HUD solution also gives users the ability to track and report on milestones for complex capital stacks. These features and others were specifically built to accelerate and optimize the operations specifically for HUD lenders.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), 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.

© 2023 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.

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Berkadia

Berkadia Creates Alliance With Knight Frank

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has formed an alliance with global property consultancy Knight Frank that will offer the firms’ clients unmatched access to domestic and internationally-based capital while maximizing their property values.

“This newly-formed relationship between our two privately-held firms will have innumerable benefits for clients on both sides,” said Berkadia CEO Justin Wheeler. “Berkadia’s depth of industry knowledge and experience will flow seamlessly with Knight Frank’s vast global network and valuation expertise to shift our transaction life cycle into high gear.”

The alliance will offer clients connectivity to and relationships with the world’s most active investors, enabling true relationships with diverse capital sources.

“Together, we have created an alliance focused on our clients’ needs, providing strategic advice and delivering a range of best-in-class capital markets solutions,” said William Beardmore-Gray, Senior Partner & Group Chairman at Knight Frank. “But more than that, we have a shared view of the world, that independent long-term relationships offer a superior experience to all our clients. This is the beginning of a lasting partnership, one which will cultivate both our firms’ collective expertise and suite of services we can offer our global client base.”

Knight Frank and Berkadia offer a combined global network comprising more than 22,750 people across 558 offices in 57 territories, spanning all key capital hubs. Together, they will be one of the world’s leading multifamily brokers.

Knight Frank is an estate agency, residential and commercial property consultancy founded in London by John Knight, Howard Frank and William Rutley in 1896. Together with its American affiliate, Cresa, Knight Frank is one of the world’s largest global property consultancies.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), 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.

© 2023 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.

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Berkadia

Berkadia Completes $110.88 Million Sale and Secures Over $58 Million in Financing for Multifamily Property in Colorado

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, the sale of and financing secured for Springs at Foothills Farm, a 264-unit garden-style multifamily community located in Colorado Springs, Colorado.

Senior Directors Nick Steele and John Laratta and Directors Nate Moyer and Tyler King of Berkadia Denver completed the $110.88 million record setting sale on behalf of the seller, Wisconsin-based Continental Properties Company, Inc. The buyer was California-based Hamilton Zanze & Company, and the deal closed on September 7. The sale of Springs at Foothills Farm represents the largest transaction in the history of Colorado Springs.

“This was an exciting asset to work on given the size and location,” said Steele. “It’s the largest single asset sale ever in Colorado Springs. Despite turbulent market conditions, we were able to procure more than 20 offers for the asset which speaks to the amount of interest for high quality, well located multifamily assets in Colorado. The fact that the transaction was consummated is a testament to the parties involved. We are grateful to have played a small part.”

Managing Director Clay Akiwenzie of Berkadia Incline Village secured $58.145 million in permanent acquisition financing on behalf of the buyer. The 10-year loan was financed through Freddie Mac.

“Closing on time on terms negotiated 90 days ago amidst such extreme capital markets volatility requires calm and seasoned hands on every edge of the transaction,” said Akiwenzie. “We had that here.”

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), 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.

© 2022 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.

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Berkadia

Berkadia Adds Specialty Group, Medical & Life Sciences

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has added Senior Managing Director Sabrina Solomiany to lead Berkadia’s newest specialty group, Medical & Life Sciences.

Solomiany will sit in the Atlanta office and will report to SVP – Deputy Head of Investment Sales Mike Miner.

“We’re thrilled to add to Berkadia’s capabilities with this new specialty group, adding to our suite of expertise,” said Miner. “Sabrina brings extensive experience in the U.S. healthcare and life science sectors and will be pivotal in expanding our footprint in this highly specialized space.”

“I’m excited to join Berkadia and build a national platform focused on delivering investment sales, debt placement and JV equity solutions for healthcare and life sciences investors,” said Solomiany. “Despite current market uncertainty, significant amounts of capital continue to pour into healthcare real estate, a sector that has been historically resistant to economic downturns.”

The new Medical & Life Sciences specialty will provide a comprehensive solution for the various specialties of healthcare real estate including medical office buildings, life sciences, hospitals, surgery centers, post-acute care and behavioral health facilities.

With over 20 years of experience, Solomiany has closed $8.2 billion in total transaction volume, including $6.5 billion of healthcare and life sciences transactions that totaled more than 22 million square feet.
Solomiany joins Berkadia from CBRE where she served as First Vice President and led the Debt & Structured Finance platform for U.S. Healthcare & Life Sciences Capital Markets. Prior to that she was a Senior Director with CBRE’s U.S. Healthcare investment sales team. She specializes in providing healthcare and life sciences real estate investors with acquisition, disposition, debt placement and recapitalization strategies. Ms. Solomiany’s expertise spans various specialties of healthcare real estate including medical office buildings, life sciences, inpatient rehabilitation facilities, short- and long-term acute care hospitals, behavioral health, surgical hospitals, cancer centers, proton therapy, specialty hospitals, free-standing emergency departments, micro hospitals and urgent cares. Her clients include REITs, institutional investors, healthcare providers, developers and private capital investors.

Solomiany received her Bachelor of Science from the University of Florida.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), 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.

© 2022 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.

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Berkadia

Berkadia Secures $235 Million in Financing for Multifamily Property in San Jose, California

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has secured in $235 million financing for The Woods, a 1,841-unit garden-style multifamily property located in San Jose, California.

Managing Director Andy Ahlers of Berkadia San Francisco secured the $235 million in permanent refinancing on behalf of the borrower, The Woods of San Jose LLC. The deal closed on June 6.

The long-term fixed-rate loan was financed through Freddie Mac.

“Berkadia worked with our lending partners at Freddie Mac to lock this loan’s interest rate back in March, well in advance of the required closing date in June,” said Ahlers. “Given the run-up in rates since March, this offered incredible value to the borrower in terms of interest rate risk mitigation.”

Located at 4300 The Woods Drive, The Woods features studio, one-, two- and three-bedroom floor plans with private patios or balconies. Community amenities include six swimming pools, multiple fitness centers and a basketball court. Residents are afforded convenient access to Los Lagos Golf Course, Raging Waters San Jose and the shops and restaurants along Monterey Road and East Capital Expressway.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), 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.

© 2022 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.

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Appointments Berkadia

Berkshire’s Berkadia Adds Sales Team to D.C. Metro Office

(BRK.A), (BRK.B)

In the midst of its record-breaking year, Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has added a new investment sales team to its D.C. Metro office, bringing on board Senior Managing Directors Walter Coker and Brian Crivella.

Coker and Crivella are regional leaders in multifamily sales, having executed over 200 sale and recapitalization transactions representing in excess of $15 billion of value and more than 40,000 units across their careers. They join an already robust investment sales team and will serve in a leadership capacity. The team will work closely with Berkadia’s D.C. Metro mortgage banking team and will report to Co-Head of Investment Sales Keith Misner.

“The D.C. Metro area, and the Mid-Atlantic region as a whole, is a mainstay for institutional and private client apartment investment activity. We have seen groundbreaking sales this year and the region is poised to continue to be a sought-after location for investment, which is why it is vital that we have the best talent on our team to support clients looking to transact in the market,” said Misner. “Few people are as experienced in the Mid-Atlantic region as Walter and Brian, and we’re thrilled to add them as leaders to our already powerhouse team in our D.C. Metro office. As we look ahead to what we know will be an incredibly active end of the year, and what we expect to be an equally active start of 2022, we’re confident that we’re bringing the best talent and opportunities to the table to enable our clients to achieve their goals.”

Berkadia has had a record-breaking investment sales year so far, closing more than $12 billion in investments sales across 400 transactions to date. The Mid-Atlantic region alone has totaled more than $1 billion across 35 transactions.

The Mid-Atlantic region alone has totaled more than $1 billion across 35 transactions.

This success comes on the heels of Berkadia’s increased commitment to serving institutional clients, who have played an outsized role in the industry’s post-COVID rebound.

At the start of the year, Berkadia acquired the apartment brokerage arm of Moran and Company, launching Berkadia Institutional Solutions, powered by Moran.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), 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.

© 2021 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.

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Berkadia

Berkshire’s Berkadia Has Record-Breaking Year

(BRK.A), (BRK.B)

While the Covid shutdown has many companies still trying to get their revenues back to pre-pandemic levels, one Berkshire Hathaway company is doing more business than ever.

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has had a record-breaking investment sales year so far, closing more than $12 billion in investments sales across 400 transactions to date.

The Mid-Atlantic region alone has totaled more than $1 billion across 35 transactions.

This success comes on the heels of Berkadia’s increased commitment to serving institutional clients, who have played an outsized role in the industry’s post-COVID rebound.

At the start of the year, Berkadia acquired the apartment brokerage arm of Moran and Company, launching Berkadia Institutional Solutions, powered by Moran.

In January 2021, Berkadia forecast robust business in its annual webinar.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), 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.

© 2021 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.

Categories
Acquisitions Berkadia

Berkadia Acquires Moran & Company

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has acquired the apartment brokerage practice of Moran & Company, expanding Berkadia’s core capabilities to include an enhanced focus on institutional investment sales.

The partnership will launch Berkadia Institutional Solutions, powered by Moran, a platform dedicated to serving institutional investors nationally through Berkadia’s robust suite of services and resources combined with Moran’s strong institutional investor relationships, built on trust, client service and collaboration.

“This is a tremendous day not just for the Berkadia and Moran teams, but most importantly for our clients—the primary focus in everything we do,” said Berkadia CEO Justin Wheeler. “We remain optimistic about the future of multifamily and are committed to building the most robust CRE platform in the country, powered by the best talent in our industry. There’s no team more experienced or respected in the institutional sales space than Moran.

Together, we will transform apartment institutional investment sales nationally, offering our clients industry leading advice, resources and support to create new opportunities and better outcomes for long-term success.”

Moran Co-Chairman Mary Ann King will be joining Berkadia as Co-Head of Investment Sales and Head of Berkadia Institutional Solutions, powered by Moran, working together with Keith Misner, SVP and now Co-Head of Investments Sales, to lead the integration of the entire 31-member Moran team, including 15 dedicated institutional sales advisors, into Berkadia.

The commercial real estate industry has witnessed record-breaking private real estate equity fundraising in the past few years, with $83 billion raised in 2019 and $23 billion through June 2020 according to Preqin. The sector continues to gain favor with investors as it provides an opportunity to hedge risk and enhance portfolio diversification. Multifamily real estate in particular has demonstrated impressive resilience, coupled with long-term income growth and liquidity characteristics, generating attractive risk-adjusted returns over the past 25 years according to the NCREIF Property Index (NPI).

Moran’s 25-year legacy in multifamily investment sales, with a specialized focus on institutional investors, will complement Berkadia’s existing investment sales, mortgage banking and servicing platforms, delivering greater access to fully integrated commercial real estate solutions.

“At Moran, we’re incredibly proud of our legacy, but always thinking ahead to how we can better anticipate—and answer—our clients’ long-term needs. In joining Berkadia, we’re doing just that,” said Thomas F. Moran, Founder and Co-Chairman of Moran & Company. “Like us, Berkadia is privately-owned and shares our client-centric and collaborative mindset, our focus on people, and our commitment to integrity and excellence.”

“Moran’s team culture and client-focused approach has enabled us to build one of the best apartment institutional sales platforms in the business,” said King. “Now, as Berkadia Institutional Solutions, powered by Moran, we’ll truly be a fully integrated platform with a national presence for our clients, providing them with actionable insights, industry expertise and technology, supported by a full suite of capital markets resources, to maximize their long-term success. We’re energized and excited to move forward together at Berkadia and execute our shared vision for the future.”

In the past two years, Berkadia has executed several other strategic acquisitions aimed at broadening the firm’s depth of expertise and enhancing the firm’s comprehensive offerings, including the:

• Acquisition of Central Park Capital Partners, which launched Berkadia’s Joint Venture Equity & Structured Capital Group;

• Addition of a tax credit syndication and advisory platform with the integration of Riverside Capital into Berkadia Affordable; and

• Acquisition of LIHTC Advisors, a brokerage firm dedicated to providing full-service solutions for apartment investors and focusing on Low Income Housing Tax Credit (LIHTC) and other affordable housing properties.

Additionally, the organization has attracted elite talent across the country, including New York City, Boston, Chicago, Houston, Philadelphia, Dallas, Seattle, Indianapolis, Denver, St. Louis, Southern California, Orlando, Richmond and Birmingham, and within specialty categories, such as Affordable Housing, Hotels & Hospitality, HUD and Student Housing.

Berkshire and Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), 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.

© 2021 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.

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Acquisitions Berkadia

Berkadia Acquires LIHTC Advisors Brokerage

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has acquired LIHTC Advisors, an Idaho-based brokerage firm dedicated to providing full-service solutions for apartment investors and focusing on Low Income Housing Tax Credit (LIHTC) and other affordable housing properties.

Leading this team will be Jeff Irish and Brandon Grisham, former principals with LIHTC Advisors who, prior to joining Berkadia, have been involved in the sale of over $2 billion of affordable housing assets throughout the country.

The addition of LIHTC Advisors will broaden Berkadia Affordable’s market presence and support long-term strategic growth under the leadership of David Leopold, SVP and Head of Berkadia Affordable.

Irish and Grisham have been in the affordable housing brokerage business for a combined 19 years representing both general and limited partners. In 2019, they closed 53 transactions—and expect to exceed that in 2020.

“This is a huge step forward in Berkadia’s goal of expanding our affordable housing team, another investment in this critical space,” said Berkadia CEO Justin Wheeler. “Jeff, Brandon and their team bring a long and successful record of providing excellent advisory and client service—what Berkadia is known for in this asset class and in our industry.”

This investment advances Berkadia’s strategic growth initiative in the affordable business. David Leopold joined as SVP and Head of Berkadia Affordable in 2019. Leopold leads the strategy of Berkadia Affordable’s Mortgage Banking, Investment Sales and recently integrated Tax Credit Syndication teams, which together deliver comprehensive capital and advisory services to support the growth of Berkadia’s affordable housing clients.

“We are thrilled to be adding such skilled affordable experts to further our goal to be the largest and most respected provider of capital and advisory services for affordable housing in the country,” said Leopold. “Jeff, Brandon and their entire team bring our suite of services and market presence to a new level, partnering with our clients to maximize the value and impact of their investments.”

“Joining the Berkadia team was an easy choice—our values of hard work, integrity and passion align with theirs, along with the promise to deliver exceptional client service,” said Grisham. Joining Irish and Grisham on the move is a team of brokers and technical experts dedicated to providing best in class analysis, marketing and sales execution.

In 2019, Berkadia’s loan origination volume was $27 billion, while its investment sales platform totaled $9 billion.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), 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.

© 2020 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.