Tag Archives: Berkadia

Berkadia Announces $18.1 Million Sale of Multifamily Portfolio in Los Angeles

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the $18.1 million sale of Artiste Portfolio, three multifamily properties located in Los Angeles, California.

Senior Managing Director Brent Sprenkle of Berkadia’s Los Angeles office led the portfolio sale on behalf of the seller, New York-based Urban Smart Growth. The buyer was Los Angeles-based Prana Investments, and the deals closed on March 7.

“The properties were a unique portfolio of three value-added apartment buildings that were held by the same owner for over 25 years,” said Sprenkle. “The properties were heavily renovated approximately 15 years ago, but the renovations are dated, and the buildings are ready for cosmetic upgrades that will allow the new owner to achieve not only higher lease rates but also improved operations and occupancy.”

Properties sold include:

• 5406 Lexington Ave. sold for $7.6 million at a per-unit price of $180,952, representing $303 per square-foot, a 4.55 percent cap rate and 12.81 GRM.
• 109 S Normandie Ave. sold for $5.75 million at $249 per-square-foot, $159,772 per-unit, a 4.55 percent cap rate and 12.07 GRM.
• 245 N Kenmore Ave. closed at $4.75 million with a 4.76 percent cap rate and 12.11 GRM. The buyer received a per-unit price of $158,333 at $308 per square-foot.
Totaling 108-units, all three properties in the portfolio are conveniently located in northeast Los Angeles. Each offer convenient access to Route 101, Route 10 and Route 110.

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.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Berkadia Acquires 50% Interest in Riverside Capital

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has acquired a 50 percent ownership interest in Riverside Capital, a full-service tax credit investment company offering capital solutions to developers of high-quality affordable housing across the country.

Riverside has guided the financing and syndication for more than 7,500 affordable units across the country, representing $900 million of equity capital.

“This acquisition gives Berkadia the opportunity to expand our presence in the affordable housing space by enabling access to a deep network of developers and investor relationships,” said Berkadia CEO Justin Wheeler. “Riverside’s reputation as an established tax credit syndication platform, with its proven track record of providing capital solutions to the affordable housing industry’s leading development companies, appealed to our desire to grow within this increasingly important asset class.”

The acquisition creates a joint venture between Berkadia and The Michaels Organization, the nation’s largest privately-held owner and developer of affordable housing. Riverside, which is national in scope, has provided tax credit syndication services for top-tier affordable housing developments across the country, including for Michaels.

“We are proud to partner with Berkadia, one of the multifamily housing industry’s most respected and successful full-service mortgage banking, loan servicing and investment sales firms,” said John J. O’Donnell, president of The Michaels Organization. “This partnership propels Riverside into a position ripe for growth as an industry-leading capital provider and tax credit syndicator for much-needed affordable housing.”

“The partnership allows us to expand Riverside Capital’s capacity while continuing to offer our clients best-in-class opportunities and services,” said Sebastian Corradino, president of Riverside Capital. During Corradino’s tenure with Riverside, the firm more than doubled its volume and expanded its originating, underwriting and asset management teams.

Consistent with this strategy of growth in the affordable housing market, Berkadia has named Steve Ervin as the head of its prominent affordable housing group, charged with growing this platform. Mr. Ervin will lead the coordination of Berkadia’s affordable debt products including Fannie Mae, Freddie Mac and HUD. In his time at Berkadia, Mr. Ervin launched the Seniors Housing and Healthcare group and is currently the head of Berkadia’s HUD production team, who was ranked #1 for volume in fiscal 2017. He will draw upon that experience to manage Berkadia’s expansion in the affordable housing industry.

In 2017, Berkadia’s loan origination volume surpassed $24 billion while its investment sales platform totaled nearly $8 billion.

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.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Berkadia’s LA Office Arranges $156+ Million in Financing

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has arranged $156.56 million in Fannie Mae financing on behalf of Realty Center Management for a portfolio of four multifamily properties throughout California.

Senior Director Branden McBirney, Associate Director Garrett LaBar and Senior Analyst Vickie Wible led the team in the deal, which closed on November 30.

Three of the 10-year permanent fixed rate loans featured a 3.64 percent interest rate, a 55 percent loan-to-value ratio and full-term interest only payments. The fourth loan featured a 4.05 percent fixed rate, a 75 percent loan-to-value ratio and three years of interest only payments. The loans were placed as a portfolio but were not cross-collateralized. The proceeds were used to refinance existing debt on the properties.

“We were excited to provide another seamless execution on behalf of our client,” said McBirney. “In order to secure very advantageous pricing, we were required to close all four loans simultaneously on the same day.”

Properties financed include:

• Overlook at Blue Ravine is located at 1200 Creekside Drive in the Sacramento suburb of Folsom, California. The property, which features a basketball court, a clubhouse, a fitness center, a putting green and a tennis court, received $88.6 million in financing.

• Americana South Bay is a luxury apartment complex in Torrance, California. The property, which features one-, two- and three-bedroom floor plans, received $32.3 million in financing and is located at 20707 Anza Ave.

• Hollywood Place Apartments is located in Hollywood Hills at 7400 Hollywood Blvd. and features studio, one- and two-bedroom apartments with fireplaces, hardwood floors, granite countertops, private storage and patios and balconies. Berkadia secured $20.8 million in financing for the property.

• Regency at Sherman Oaks was recently redesigned and features many property amenities, such as a pool, a fitness center, a sauna and a barbeque area and is located at 4616 Willis Ave. in Sherman Oaks, California. The Los Angeles team secured $14.6 million for the refinancing.

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 Nearly $1 billion in Financing

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has arranged financing totaling nearly $1 billion for the acquisition of the Beacon multifamily property portfolio.

Managing Directors Laura Cathlina and Sharon Plattner of Berkadia’s Chicago office secured the Freddie Mac loan on behalf of affiliates of Harbor Group International. The deal closed on November 30.

“Our team was pleased to have been given the opportunity to assist Harbor Group International with the financing of this exclusive portfolio that supports their diversified investment strategy,” said Cathlina. “The end result was a creative multi-faceted loan structure which will provide Harbor a significant amount of flexibility for future decision making. Our partners at Freddie Mac did an outstanding job in working with us to structure this transaction.”

The Freddie Mac financing encompasses 16 properties located in Boston, Baltimore, Chicago, Washington D.C. and Philadelphia, which are part of an overall 25 property portfolio. Eleven of the properties were financed with a fixed rate vehicle for over $789 million. The remaining five properties were financed with a floating rate vehicle for over $138 million.

“The acquisition of the Beacon portfolio represents a milestone transaction for Harbor Group International (HGI) as we continue to grow our investment portfolio,” commented T. Richard Litton, Jr., HGI president. “We are very appreciative of Berkadia’s work on our behalf to structure almost $1 billion of Freddie Mac fixed and floating rate debt.”

Since the beginning of 2017, Berkadia’s mortgage banking team has closed over $19 billion in production volume – an increase of 22 percent compared to the previous year. In 2016, Berkadia’s loan origination volume was $20 billion, ranking first with U.S. Department of Housing and Urban Development, second with Freddie Mac and fourth with Fannie Mae in delivered loan volume.

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. In 2016, Berkadia’s loan origination volume was $20 billion, ranking first with U.S. Department of Housing and Urban Development, second with Freddie Mac and fourth with Fannie Mae in delivered loan volume—the only lender in the top four for all three organizations.

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 Names New Head of Mortgage Banking

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the addition of prominent industry veteran Hilary Provinse as Executive Vice President and Head of Mortgage Banking. She will oversee a team of 130 experienced mortgage bankers located in 31 offices across the country. Ms. Provinse will be a member of Berkadia’s Management Committee and report to Ernie Katai, Executive Vice President and Head of Production. She joins Berkadia from Fannie Mae after a 15-year career, where she most recently served as Senior Vice President and Head of Multifamily Customer Engagement.

“We are extremely fortunate to have Hilary join the Berkadia team,” said Berkadia CEO Justin Wheeler. “With more than 20 years of experience and leadership in CRE capital markets, she is a dynamic leader and forward thinker. Her positive energy and relentless drive to perfect the customer experience will continue to push our platform to new levels. A talent of her caliber is an incredible addition.”

Most recently at Fannie Mae, Provinse led a team of 85 professionals in offices across the country, overseeing all of Fannie Mae’s multifamily debt lending activities and customer engagement. She oversaw Fannie Mae’s transformation to a relationship-based, customer-centric sales organization and led the multifamily production team to double their production volume over a four-year period.

“I could not be more excited to join Berkadia, a client-first organization that provides holistic commercial real estate solutions through its integrated mortgage banking, investment sales and servicing platform,” said Ms. Provinse. “While at Fannie Mae, I saw Berkadia investing in its people and culture and focusing on innovation, process and technology to grow its mortgage banking footprint exponentially to better serve customers, and I’m thrilled to have the opportunity to build upon that success.”

Prior to her tenure at Fannie Mae, Ms. Provinse spent nearly a decade on Wall Street in investment banking and fixed income trading at Goldman Sachs and Bear Stearns. She earned a Bachelor’s degree from Dartmouth College and a Master of Business Administration degree from Northwestern University’s J.L. Kellogg Graduate School of Management.

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. In 2016, Berkadia’s loan origination volume was $20 billion, ranking first with U.S. Department of Housing and Urban Development, second with Freddie Mac and fourth with Fannie Mae in delivered loan volume—the only lender in the top four for all three organizations.

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 Announces $41 Million in Financing for Multifamily Property in New Jersey

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the financing of a $41 million first mortgage for The Woods at Blue Heron Pines, a multifamily community in Galloway Township, New Jersey. Managing Director Jim Badolato and Senior Analyst Patti Henne of Berkadia’s Philadelphia office structured the financing through the firm’s partnership with Freddie Mac. The borrower is an entity controlled by DiLucia Management, a Pennsylvania-based management company.

Utilized to refinance a maturing loan, the new 10-year financing carries a sub-4 percent fixed interest rate and five years of interest only.

“DiLucia’s long-term commitment to the asset and its residents is evident, making this an ideal lending opportunity for Berkadia,” said Badolato. “Freddie Mac understood the fundamental strengths of the property and location. Despite proximity to Atlantic City, there is a diverse base of employment drivers and a limited supply of quality rental housing in the area. Major employers within five miles of the property include AtlantiCare’s headquarters, AtlantiCare Regional Medical Center, Stockton University, Atlantic City Airport and the Federal Aviation Administration William J. Hughes Technical Center, which employs over 2,500 people.”

The Woods at Blue Heron Pines is located at Bally Bunion Drive, affording convenient access to the Atlantic City Expressway and the Garden State Parkway. The Class A community has 330 units on over 58 acres with views of Ron Jaworski’s Blue Heron Pines Golf Club. The property features large floorplans averaging 1,458 square feet, each with a private garage. Developed by DiLucia in 2001, the asset is in excellent condition and has consistently performed at over 95 percent occupancy.

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 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.