(BRK.A), (BRK.B)
Berkadia has arranged $14 million in financing for Latitude Queen Anne, a multifamily property located in Seattle.
Senior Managing Director Mitch Thurston and Senior Director Andy Ahlers of the San Francisco office secured the loan through Berkadia’s Fannie Mae program.
The full-term loan includes 10 years of interest-only debt service payments.
Latitude Queen Anne is 95 percent occupied and consists of 76 loft, one- and two-bedroom units. Community amenities include a rooftop with grilling and al fresco eating areas, resident lounge with a coffee and tea bar, fitness center and dog run with a pet station. Located at 500 Third Ave. W., the property is approximately two miles northwest of downtown Seattle.
“Seattle’s economy is strong, and the region’s multifamily market and lending activity is following suit,” Mitch Thurston said. “Berkadia’s strong West Coast presence allowed us to leverage our regional expertise to secure an attractive loan, which enabled the borrower to capitalize on favorable market trends.”
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 was among the top Freddie Mac and Fannie Mae multifamily lenders for 2013.
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.
© 2015 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.