Category Archives: Berkadia

Berkadia Completes Two Seattle-Area Multi-Family Sales

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has completed the sales of Huntington Park and The Orion, two multifamily properties in the Puget Sound.

Berkadia’s Kenny Dudunakis, David Sorensen and Ben Johnson of the Seattle office oversaw the sales.

Washington-based Curtis Capital Group purchased The Orion, which is located at 29 Saint Helens Ave. in Tacoma for $30.24 million. The seller was California-based Investors Management Group. The 168-unit midrise property features one and two-bedroom floor plans with wood-style flooring. Community amenities include a rooftop terrace and a 24-hour fitness center.

In the other sale, New York-based New York Life Insurance Company acquired Huntington Park, which is located at 9009 W. Mall Dr. in Everett from an undisclosed seller. The 381-unit garden-style property features one, two and three-bedroom floor plans with private balconies and in-unit washers and dryers.

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.

© 2019 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.

Berkadia Adds Tax Credit Syndication and Advisory Platform

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has expanded its affordable housing capabilities with the addition of a tax credit syndication and advisory platform.

This team of specialized experts comes from Riverside Capital, in which Berkadia invested in 2018. The integration will offer clients access to the already robust Berkadia Affordable Housing team and add tax credit syndication services, advancing the goal of offering developer clients access to seamlessly integrated solutions for all of their affordable housing capital needs.

“This expansion not only gives Berkadia the opportunity to cement our position as a leader in the affordable housing space, but it allows us to dig even deeper and better serve a specialized niche of developers and investors who are working diligently to meet the need of additional affordable housing units across the country,” said Berkadia CEO Justin Wheeler. “Riverside has a solid record of success in providing capital solutions to the affordable housing industry’s leading development companies, so this additional capability will benefit Berkadia and Riverside customers alike, particularly as we pursue an aggressive growth strategy in the affordable housing market.”

Since the collaboration with Riverside began in 2018, Berkadia has expanded its capabilities in the affordable space with the strategic hiring of mortgage bankers and investment sales advisors across the country, in addition to tax credit equity placement through Riverside as well as conventional joint venture equity solutions.

“According to NLIHC’s April report, there are 11 million extremely low-income renter households and only 4 million affordable and available units, leaving a shortage of 7 million units,” stated Sebastian Corradino, former Riverside President and CEO and current Senior Managing Director on the Berkadia Affordable Housing team. “As Berkadia, we will continue to partner with investors and developers to reduce the affordable housing gap, fulfilling the business objective to do well with the social imperative to do good. Our entire team is incredibly excited to now be part of the Berkadia Affordable Housing platform.”

“The former Riverside acquisitions, investor relations and asset management teams will continue to provide the exceptional, personalized level of service our clients expect while also giving them access to new opportunities the Berkadia network offers,” said Corradino.

In 2018, Berkadia’s loan origination volume surpassed $26 billion while its investment sales platform totaled over $8 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.

© 2019 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.

Berkadia Secures $93M Financing for Multi-Family Property in Metro D.C.

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has arranged a $92.7-million loan to refinance Woodbridge Station, a garden-style multifamily community in Woodbridge, Virginia.

Woodbridge is approximately 22 miles south of Washington, DC.

Located at 1400 Eisenhower Circle, the community features two-, three- and four-bedroom apartments with full-size washers and dryers in-unit. Amenities include a swimming pool with a sun deck, 11 community playgrounds, hiking and jogging trails, a tennis court, dog park, grilling areas and storage units.

Jonathan Pratt and Rossana Bouchaya of Berkadia’s Washington, DC office secured a seven-year, interest-only Fannie Mae loan with a 70% loan-to-value ratio on behalf of the borrower, Washington, DC-based developer and operator Foulger-Pratt. The deal closed July 31.

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.

© 2019 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.

Berkadia Provides $47.2M Construction Loan for Dallas Multifamily Property

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has announced the financing for Stacy Pointe Apartments, a multifamily property to be constructed in Allen, Texas, a northern suburb of Dallas.

Senior Director Chad Bedwell of Berkadia’s Dallas office originated the $47.23 million construction loan through HUD. The borrower was Texas-based Stacy Pointe Partners LP, and the deal closed on July 12.

The 221(d)(4) construction loan features an 85 percent loan-to-cost ratio. With the improving interest rate environment, the borrower was able to maximize the loan proceeds.

Stacy Pointe Apartments will be constructed at 1845 Chelsea Blvd., affording convenient access to N. Central Expressway and the shops and restaurants along Stacy Road and within the Stacy Green urban development area.

The four-story property will offer one- and two-bedroom floor plans. Community amenities will include elevators, a tuck-under parking structure, a swimming pool, a business center, a fitness center, media areas, co-working areas and controlled access and connection to the community parks and trail system near Cottonwood Creek.

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.

© 2019 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.

Berkadia Arranges Sale of 360-Unit Apartment Community in San Antonio

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has arranged the sale of Axio Apartments, a 360-unit garden style apartment community in San Antonio, Texas.

Managing Director Mike Miller, Senior Director Will Caruth, Director Chris Ross and Director Cody Courtney of Berkadia’s San Antonio office represented the seller, Presidium Group, a real estate investment firm based in Texas.

“Axio Apartments exemplifies the upside potential that exists throughout San Antonio’s multifamily inventory,” said Caruth. “With almost 20,000 new residents moving to San Antonio over the past year due in part to its affordability, the demand they bring has elevated rent growth above the national average, making it a compelling market for investors.”

Built in 1982 and renovated in 2016, Axio Apartments is located at 8722 Cinnamon Creek Drive. One-, two- and three-bedroom units feature dishwasher, disposal, range and walk-in closets. Community amenities include fitness center, pool, basketball court, tennis court and volleyball court.

Situated in northwest San Antonio, Axio Apartments is located near major employers and transit routes. The USAA Corporate Headquarters is less than a minute away and South Texas Medical Center is under 10 minutes away. Interstate 10 is about 2 miles away, providing direct access to Interstate 410 and Downtown San Antonio.

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.

© 2019 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.

Berkadia Arranges $50M Refinancing for Pan American Life Center

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has arranged the $49.8-million refinancing loan for the Pan American Life Center, a 28-story office building in New Orleans.

Located at 601 Poydras Street, the property consists of 674,000 square feet of leasable office space. On-site features and amenities include building management, a covered parking garage and a full-service restaurant. The building’s Conference Center also features a 24,451-square-foot multi-purpose facility, and a 252-seat theater-style auditorium.

Berkadia’s Andy Coleman secured the financing on behalf of the borrower, Louisiana-based Stirling Properties through lender Wells Fargo. The loan features a 10-year, fixed-rate term and a 25-year amortization schedule.

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.

© 2019 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.

Berkadia Secures JV Equity Financing for TRIBECA Condo Development in D.C.

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has arranged the JV equity financing for The TRIBECA, a new condo development by Urban Investment Partners (UIP) in the rapidly growing NoMa submarket of Washington D.C.

The team, consisting of Noam Franklin, Chinmay Bhatt and Cody Kirkpatrick, leading Berkadia’s new JV Equity & Structured Capital, arranged the equity partner, a private capital group, for UIP while they were with Central Park Capital Partners (CPCP), which was sold to Berkadia in March 2019.

“Ground up condo projects in today’s market are tough to get capitalized, but we were able to quickly find UIP a partner for this opportunity due to the developer’s expertise in the DC area and lack of new supply in the emerging neighborhood of NoMa,” said Franklin. “We are always impressed with UIP’s vision for their projects and investing across multiple cycles with success.”

The TRIBECA, a transit-oriented development, will feature 99 market-rate condominium units in the highly desirable NoMa submarket, a neighborhood with a limited upcoming condo supply. The 13-story building will include a mix of one- and two-bedroom homes, as well as a fitness center, bike storage, garage parking and a rooftop deck.

The site is located at 39-41 New York Ave., just one block from the NoMa-Gallaudet University Metro station. Construction has commenced with an expected completion in late 2020.

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.

© 2019 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.

Berkadia Completes $26 million Sale of The Preserve at Collier Ridge

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has announced the $26 million sale of The Preserve at Collier Ridge, a 419-unit garden-style multifamily property in Fulton, Georgia.

Managing Directors Andrew Mays and Paul Vetter, Senior Director Judy MacManus and Director Matthew White of Berkadia’s Atlanta office completed the sale on behalf of the seller, Atlanta-based DRI Legacy, LLC.

The buyer was Montreal-based Frankforter Group.

“The property is located in a newly registered “Opportunity Zone” and proximate to the new $460 million UPS distribution facility which contributes to a strong value-add story for the property,” said MacManus.

“Currently 100 percent affordable with qualified contract eligibility, Preserve at Collier Ridge is a Section 42 LIHTC community that is eligible for market-rate conversion in 2021 and allows new ownership to benefit from substantial upside in the near future,” added White.

The Preserve at Collier Ridge features one-, two- and three-bedroom floor plans with dishwashers, garbage disposals, air conditioning and private balconies. Community amenities include a pool, a playground, laundry facilities and a picnic area. The new ownership plans to upgrade the existing fitness center and add both a business center and a community room. Located at 1021 Harwell Road NW, the property affords convenient access to Interstate 285.

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.

© 2019 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.

Berkadia Acquires Central Park Capital Partners

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, continues to grow. Berkadia has acquired Central Park Capital Partners, a boutique real estate capital advisory firm focused on arranging joint venture investments and structured capital from international and domestic institutional and qualified capital sources.

CPCP’s Founder and Managing Principal Noam Franklin and Principals Chinmay Bhatt and Cody Kirkpatrick will launch Berkadia’s Structured Capital Group to offer greater support and resources to Berkadia clients.

Mr. Franklin and Mr. Bhatt will be based out of Berkadia’s New York City headquarters, while Mr. Kirkpatrick will operate out of Berkadia’s Denver office.

“With our acquisition of Central Park Capital Partners, we’re redoubling our efforts to make the accessibility of joint venture and structured capital a true differentiator with new levels of personalization and customization for the mutual benefit of our clients,” said Berkadia CEO Justin Wheeler. “As the cycle matures and deal structures become more sophisticated, tapping into a wide range of joint venture capital is critical to our clients. Having worked with Noam, Chinmay and Cody on a number of successful deals, CPCP was the obvious choice for a competitive acquisition.”

“The CPCP team has deep relationships with diverse domestic and international joint venture capital sources and they share our long-term view and dedication to client service,” continued Wheeler. “With the launch of Berkadia’s Structured Capital Group, we’re truly a one-stop shop—enabling clients to take advantage of competitive opportunities in the market in a more streamlined manner and driving greater value.”

In 2018, Berkadia completed over $34 billion in combined mortgage banking and investments sales production across more than 1800 transactions.

“We’ve been working closely with the Berkadia team recently and have been impressed that they share our targeted approach to client engagement and deal execution,” said Mr. Franklin. “We have strong domestic and international capital relationships, particularly in the Middle East, Canada, Europe and Asia.”

“In joining Berkadia, we’re bringing a diverse roster of new capital sources to the table, creating enhanced joint venture matchmaking opportunities backed by best-in-class insight, technology and experience,” continued Mr. Franklin. “Considering current market conditions, owners and developers are looking beyond their traditional partners and seeking to grow their stable of joint venture funding sources in order to capitalize deals. As Berkadia’s Structured Capital Group, we’re well positioned to meet this challenge and create synergies that will drive results for all stakeholders.”

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.

© 2019 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.

Berkadia Completes Sale and Financing for Multifamily Property in Fort Worth, Texas

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has announced the sale and financing of a 399-unit garden-style multifamily property in Fort Worth, Texas.

Managing Directors Jay Gunn and Tom Burns, along with Senior Directors Taylor Hill, Michael Ware and William Jarnagin, all of Berkadia’s Dallas office completed, the sale on behalf of the seller Atlanta-based Cortland. The buyer was Houston-based Hilltop Residential.

The deal closed on February 5.

“This was a unique community with value-add potential, and as such, we experienced higher-than-normal levels of interest and tour activity,” said Gunn. “We continue to see strong investor demand flow to the Fort Worth side of the metroplex.”

Director Nicholas Murphy of Berkadia’s Houston office secured acquisition financing through Wells Fargo for Hilltop Residential. The three-year interest-only loan features a floating rate and a 65 percent loan-to-value ratio.
“Berkadia identified a capital partner who shared the same vision as the borrower and had a lending program that aligned with the borrower’s business plan,” said Murphy. “The lender agreed to finance 100 percent of the capital improvement plan and close in a short time frame, creating a perfect financing vehicle to facilitate the transaction.”

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.

© 2019 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.