Tag Archives: Berkadia

Berkadia Division to Secure Financing for Mixed-Use Project in Downtown San Diego

(BRK.A), (BRK.B)

A joint venture led by Manchester Financial Group has engaged Berkadia Hotels and Hospitality to source a $650 million construction loan on the Manchester Pacific Gateway development.

The project is situated on San Diego’s waterfront and is the largest undeveloped urban waterfront site on California’s coast. The $1.3 billion project will include 2,823,188 million square feet of hotel, office and retail space in San Diego’s thriving downtown business district.

Berkadia’s Hotels and Hospitality group has been tasked with sourcing a 50 percent LTC non-recourse construction loan that will close by year end 2017. Berkadia Senior Managing Director Andrew Coleman and Managing Director Jackson Cloak will lead the team’s efforts.

Manchester Financial Group has extensive experience in developing convention center hotels and other commercial real estate, having developed more than $2 billion in assets in 11 states, including the Manchester Grand Hyatt San Diego, the 1,360-room San Diego Marriott Marquis & Marina, and the 249-room The Grand Del Mar—California’s only Forbes Triple Five Star resort. The company is currently in construction on the 1,066-room Fairmont convention hotel in Austin, Texas.

The property will include 1,205,490 square feet of office space, 391,231 square feet of retail space, 2,437 parking spaces, a 260-room boutique hotel, and will be anchored by an 1,100-room Four Seasons hotel.

About Berkadia

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.

© 2017 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 Closed $221 Million in Financing for Brookdale Senior Living

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced it had closed $221 million in financing for Brookdale Senior Living Inc. on July 11.

The Fannie Mae Credit Facility is for 10 years and will be used to refinance two existing Brookdale loan portfolios. It has a a 75% loan-to-value ratio and a 30-year amortization schedule.

“The Fannie Mae Credit Facility product provided Brookdale flexibility to meet their financing needs. The Brookdale team, the Fannie Mae team and the Berkadia underwriting team worked together to make this transaction a seamless process,” said Berkadia’s Managing Director Heidi Brunet. She originated the transaction with Christopher Fenton.

Brookdale Senior Living is the leading seniors housing operator in the country and operates 1,036 communities with the ability to serve approximately 102,000 residents as of June 30, 2017.

About Berkadia

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.

© 2017 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 Facilitates $60 Million Sale in Seattle

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the recent $60.7 million sale of Carroll’s Creek Landing, a multifamily property in the Seattle suburb of Marysville, Washington. Senior Managing Director Kenny Dudunakis and Directors David Sorensen and Ben Johnson of Berkadia’s Seattle office represented the seller, Maryland-based Gateway Trident LLC.

The buyer was JRK Property Holdings, and the deal closed on August 1.

“With large floor plans at half the price of similar units in King County, Carroll’s Creek Landing offers a great living option for families in the area,” said Dudnakis. “JRK Property Holdings specializes in providing attractive affordable housing, and we were excited to work with them on this acquisition.”

Built in 2002, Carroll’s Creek Landing is located at 18111 25th Ave., affording convenient access to several nearby shopping centers. The property features two-, three- and four-bedroom apartments with dishwashers, patios and walk-in closets. Residents can also enjoy several community amenities, including a welcome center, a basketball half-court, a clubhouse with a fireside lounge and a barbeque and picnic area.

About Berkadia

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.

© 2017 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 Loans for Buyers of Florida Keys Hotels

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has secured two loans approaching $14 million on behalf of Songy Highroads LLC, and the Wardman Group. Songy Highroads is an Atlanta-based real estate investor who recently acquired two hotel properties in Islamorada, one of the Florida Keys’ top destinations.

The Wardman Group is led by Thad Paul, a former Carlyle Group executive and Washington D.C. -based hotel expert.

Berkadia South Florida Senior Managing Director Charles Foschini and Managing Director Chris Apone arranged the financing.

First National Bank of South Miami provided $7.05 million to finance the acquisition of the Days Inn Islamorada Resort, a 37-unit property located about halfway between Miami and Key West.

The same lender also provided $6.8 million for the acquisition of Harbor Lights Islamorada, a similar-sized motel on five acres boasting 600 feet of Atlantic Ocean frontage. Both are five-year, fixed rate-loans, with partial interest only, at an aggressive rate.

“The typical motel in the Florida Keys is a ‘mom and pop’ operator and does not operate with a high degree of efficiency,” explained Foschini. “These motels, however, are in phenomenal locations on the ocean. Working together, Songy Highroads and Wardman recognized that operating the hotels as one will not only provide a more institutional approach to the management of the hotel, but bring a highly amenitized touch to a market starved for a quality experience in an intimate boutique setting. The lender also recognized the underlying value of the assets, and offered loan terms that were not only aggressive, but provided the capital needed to elevate the assets with upgrades, amenities and branding.”

The Days Inn Islamorada Resort is located at 82749 Overseas Highway; Harbor Lights is located slightly further south at 84951 Overseas Highway. Both are located in close proximity to popular attractions including Theatre of the Sea, Long Key State Recreation Park, Treasure Village and several diving and snorkeling sites.

Harbor Lights has been prominently featured in the Netflix hit series “Bloodline,” and maintains a cult following with fans of the show.

About Berkadia

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.

© 2017 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 Third Purchase with Kort & Scott Financial Group

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the sale of a newly constructed, 126-unit, mid-rise community located in Lake Balboa, California.

Managing Director Vince Norris, along with Managing Director Jim Fisher and Senior Director Mike Smith from Berkadia’s Los Angeles office completed the sale on an “off-market” basis.

The transaction was completed on behalf of a private developer for Anaheim-based, Kort & Scott Financial Group. Escrow closed on July 12.

Kort & Scott Financial Group has completed three recent purchases through Norris at Berkadia. In addition to this acquisition, the group also purchased 6940 Sepulveda Blvd. and the Plaza at Lafayette. For Kort & Scott, this marks nearly $250,000,000 of transactions this year and increases their multifamily portfolio to over 9,000 units.

“With this acquisition, Kort & Scott has over 220 units in the Van Nuys sub-market and will be able to achieve tremendous operating efficiencies and take advantage of the Valley’s steady rent growth,” said Norris.

About Berkadia

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.

© 2017 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’s Student Housing Group Closes Over $146 Million in Sales for Two West Coast Student Housing Properties

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced that its Student Housing Group has completed the sale of two properties totaling more than $146 million.

Berkadia’s student housing team, led by Managing Director Kevin Larimer and Director Greg Gonzalez, teamed with Senior Managing Director Kenny Dudunakis, Director David Sorensen and Director Ben Johnson of Berkadia’s Seattle office on the sale of AVA University District at University of Washington – Seattle on behalf of the seller, Arlington, Virginia based Avalon Bay Communities Inc. The student housing team, working with Managing Director Shane Shafer of Berkadia’s Irvine office, also closed Fullerton University Village at California State University in Fullerton, California on behalf of the seller, a local TIC group.

“Student housing seems to be the product type of choice right now for investors,” said Larimer. “Investors have identified the strong fundamentals of student housing with fewer deliveries, average occupancy above 97 percent, annual rent growth more than three percent and a fixed resident base from which to draw. Whether they are looking for yield or a defensive position, investors are finding a comfortable home for their capital in student housing.”

Located at 4535 12th Ave., AVA University District features studio, one- and two-bedroom apartments within walking distance of University of Washington and less than five miles from downtown Seattle. Units feature high-speed internet, a washer/dryer and air conditioning. The property also has a barbeque and picnic area, two rooftops with green spaces and on-site social events.

Fullerton University Village is located at 2000-2030 Oxford Ave., within walking distance of California State University, Fullerton. The property offers studio, two- and three-bedroom fully-furnished apartments with refrigerators, flat screen televisions and all utilities included in the cost of rent. Residents can also enjoy a fitness center, swimming pool, student lounge and monthly organized events.

About Berkadia

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.

© 2017 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 One of the Largest Multifamily Sales in San Diego History

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the completion of one of San Diego County’s largest apartment transactions to date—the $232 million sale of Pacific Ridge.

Managing Directors Ed Rosen and John Chu, as well as Directors Kyle Pinkalla and Erin Dammen, completed the property’s sale on behalf of a San Francisco-based entity, which was purchased by American Assets Trust, Inc, a San Diego-based REIT.

“Pacific Ridge was a high-profile deal in an extremely desirable location,” noted Rosen. “Our data shows that asking rents in San Diego are up 4.9 percent from Q1 2016. We anticipate that this increase coupled with the property’s prime location across the street from the University of San Diego’s campus will help create long-term stabilization and rent growth for the property.”

Berkadia also reports metro San Diego has the third-lowest unemployment rate among major metro areas in California, behind only San Francisco-Oakland and San Jose-Santa Clara.

“Renters and investors alike find themselves attracted to this area given the numerous opportunities,” added Chu. “The metro unemployment rate was 4.3 percent at the end of January, which was 60 basis points below the rate recorded during the same time period in 2016, and it was also 80 basis points below the California rate. Strong employment and apartment fundamentals help fuel a steady market.”

The Class A luxury community, located at 5945 Linda Vista Road, was built in 2013 and offers 533 units with floor plans ranging from studio to three-bedroom. Situated on more than 15 acres with unobstructed ocean views, the resort-style Pacific Ridge boasts Moroccan-styled indoor and outdoor retreats, sun-drenched lounges, two saltwater pools and spas, and an outdoor grill and dining pavilion.

About Berkadia

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.

© 2017 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 Over $130 Million in Loan Proceeds for Houston Multifamily Portfolio

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced that it has arranged more than $130 million in financing for H7, a portfolio of seven, Class B multifamily properties located in Houston.

Managing Director Ed Kim of Berkadia’s Irvine office originated the refinancing, which closed on May 1. The floating rate bridge loan, secured through a CMBS lender, featured a 75 percent loan-to-value ratio. Totaling more than 2,000 units, the portfolio had an average occupancy rate greater than 93 percent at closing.

“The solid rent growth and stable occupancy in the Houston Class B multifamily space, coupled with a decline in interest rates, has fueled an increase in apartment refinances,” Kim said. “The lender was able to meet the borrower’s required timeline, which was aggressive, and provide a favorable structure accretive for the sponsor’s investment thesis.”

The properties offer one-, two- and three-bedroom units with a variety of amenities, including fireplaces, walk-in closets, dishwashers, ceiling fans, hardwood floors, built-in bookshelves, gated access, clubhouses, fitness centers and swimming pools.

About Berkadia

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.

© 2017 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’s L.A. Office is Top Freddie Mac Lender in Western Region, Again

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced that its Los Angeles team was recently recognized as the 2016 top conventional seller/servicer office by Freddie Mac in the western region for multifamily loans.

This is the third consecutive year that the L.A. office has topped the ranking.

The L.A. office originated $3.16 billion with Freddie Mac in 2016, representing 72 loans secured throughout the country. The L.A. office’s 2016 production with Freddie Mac increased more than a 25 percent over 2015, a year in which they were also the top office in Freddie Mac’s western region.

“Berkadia is proud to recognize our Los Angeles mortgage banking team for the third year in a row. Their continued in-depth knowledge of the programs, deep relationships with the Freddie Mac team and relentless desire to serve their clients has clearly led to their success,” said Ernie Katai, executive vice president and head of production at Berkadia. “It’s work like this being completed by Berkadia offices—in Los Angeles and across the country—that underscores the reason why, on a nationwide combined basis, Berkadia is number one with Freddie Mac, Fannie Mae and HUD, as well as having the distinction of being the one and only lender ranked in the top four within all of these organizations.”

In 2015, Berkadia’s Los Angeles team originated $2.52 billion, and in 2014, they secured $1.79 billion in financing through Freddie Mac.

About Berkadia

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.

© 2017 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 $262.5 Million in Acquisition financing for Cleveland’s Key Center

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has arranged $262.5 million in acquisition financing for Key Center, Cleveland’s tallest skyscraper—a 1.3 million-square-foot, Class-A office tower and the adjacent Marriott Hotel and parking structure.

The property is located in Cleveland’s Public Square. Senior Director Mark Vogel secured the acquisition loan, representing Berkadia’s largest conduit loan to date. The deal was completed on January 31, 2017.

Berkadia represented The Millennia Companies, which is headquartered in Cleveland. The seller was Columbia Property Trust, Inc. The 10-year senior mortgage fixed loan lead by Citibank, included Bank of America and Deutsche Bank. Apollo Global Management provided the mezzanine debt financing.

“Key Center is an iconic part of Cleveland’s skyline and represents the state of Ohio’s tallest building,” said Vogel. “The institutions involved in this transaction acted extremely aggressively. They provided a substantial portion of the required capital to facilitate the acquisition and fund future improvements related to the hotel’s redevelopment and the building’s increased occupancy. Berkadia worked diligently with the entire Millennia team, and it was truly a collaborative effort.”

Built in 1991, the integrated, mixed-use complex Key Center comprises a 57-story office tower, a 400-room Marriott Hotel and a parking structure. It also houses the headquarters of both the property’s namesake, Key Bank, and law firm BakerHostetler.

At the end of 2016, the office tower was 82 percent leased. A portion of the asset will become Millennia’s new headquarters, moving hundreds of employees from Rockside Road to Key Tower over the next year. Millennia’s lease, along with the anticipated move of Forest City Realty Trust, Inc. to Key Center, will increase the building’s occupancy up to 95 percent.

“We are already in the design phase of a $24 million renovation to the tower lobby, plaza and hotel,” said Frank Sinito, president of The Millennia Companies.

About Berkadia

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.

© 2017 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.