Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has announced the financing for Stacy Pointe Apartments, a multifamily property to be constructed in Allen, Texas, a northern suburb of Dallas.
Senior Director Chad Bedwell of Berkadia’s Dallas office originated the $47.23 million construction loan through HUD. The borrower was Texas-based Stacy Pointe Partners LP, and the deal closed on July 12.
The 221(d)(4) construction loan features an 85 percent loan-to-cost ratio. With the improving interest rate environment, the borrower was able to maximize the loan proceeds.
Stacy Pointe Apartments will be constructed at 1845 Chelsea Blvd., affording convenient access to N. Central Expressway and the shops and restaurants along Stacy Road and within the Stacy Green urban development area.
The four-story property will offer one- and two-bedroom floor plans. Community amenities will include elevators, a tuck-under parking structure, a swimming pool, a business center, a fitness center, media areas, co-working areas and controlled access and connection to the community parks and trail system near Cottonwood Creek.
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.