(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.