Berkshire’s Berkadia Has Record-Breaking Year

(BRK.A), (BRK.B)

While the Covid shutdown has many companies still trying to get their revenues back to pre-pandemic levels, one Berkshire Hathaway company is doing more business than ever.

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has had a record-breaking investment sales year so far, closing more than $12 billion in investments sales across 400 transactions to date.

The Mid-Atlantic region alone has totaled more than $1 billion across 35 transactions.

This success comes on the heels of Berkadia’s increased commitment to serving institutional clients, who have played an outsized role in the industry’s post-COVID rebound.

At the start of the year, Berkadia acquired the apartment brokerage arm of Moran and Company, launching Berkadia Institutional Solutions, powered by Moran.

In January 2021, Berkadia forecast robust business in its annual webinar.

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.

© 2021 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.

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