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.