Category Archives: Berkadia

Berkadia Acquires LIHTC Advisors Brokerage

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has acquired LIHTC Advisors, an Idaho-based brokerage firm dedicated to providing full-service solutions for apartment investors and focusing on Low Income Housing Tax Credit (LIHTC) and other affordable housing properties.

Leading this team will be Jeff Irish and Brandon Grisham, former principals with LIHTC Advisors who, prior to joining Berkadia, have been involved in the sale of over $2 billion of affordable housing assets throughout the country.

The addition of LIHTC Advisors will broaden Berkadia Affordable’s market presence and support long-term strategic growth under the leadership of David Leopold, SVP and Head of Berkadia Affordable.

Irish and Grisham have been in the affordable housing brokerage business for a combined 19 years representing both general and limited partners. In 2019, they closed 53 transactions—and expect to exceed that in 2020.

“This is a huge step forward in Berkadia’s goal of expanding our affordable housing team, another investment in this critical space,” said Berkadia CEO Justin Wheeler. “Jeff, Brandon and their team bring a long and successful record of providing excellent advisory and client service—what Berkadia is known for in this asset class and in our industry.”

This investment advances Berkadia’s strategic growth initiative in the affordable business. David Leopold joined as SVP and Head of Berkadia Affordable in 2019. Leopold leads the strategy of Berkadia Affordable’s Mortgage Banking, Investment Sales and recently integrated Tax Credit Syndication teams, which together deliver comprehensive capital and advisory services to support the growth of Berkadia’s affordable housing clients.

“We are thrilled to be adding such skilled affordable experts to further our goal to be the largest and most respected provider of capital and advisory services for affordable housing in the country,” said Leopold. “Jeff, Brandon and their entire team bring our suite of services and market presence to a new level, partnering with our clients to maximize the value and impact of their investments.”

“Joining the Berkadia team was an easy choice—our values of hard work, integrity and passion align with theirs, along with the promise to deliver exceptional client service,” said Grisham. Joining Irish and Grisham on the move is a team of brokers and technical experts dedicated to providing best in class analysis, marketing and sales execution.

In 2019, Berkadia’s loan origination volume was $27 billion, while its investment sales platform totaled $9 billion.

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.

© 2020 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.

Berkshire’s Berkadia Partner Loses CFO to Coronavirus

(BRK.A), (BRK.B)

Jefferies Financial Group, Berkshire Hathaway’s joint-venture partner in Berkadia, has announced the death of it CFO due to Coronavirus.

In a statement issued by Jefferies, they noted “with profound sadness that Peg Broadbent, the CFO of Jefferies Group LLC, has passed away from coronavirus complications. The entire Jefferies family mourns Peg’s loss. On behalf of our Board of Directors, management team and all our global employees, we extend our deepest sympathies to Peg’s family.

Rich Handler, our CEO, and Brian Friedman, our President, expressed their most heartfelt condolences and stated: ‘We are heartbroken and grieve that our friend and colleague, Peg Broadbent, has passed away from coronavirus complications. Our thoughts, prayers and love go out to Peg’s dear wife, Hayley, and their young children, Sebastian and Peg, as well as Peg’s older children, Anna, Sophie and Charlie, and all of Peg’s extended family here and in the United Kingdom.

The loss of Peg is incredibly personal for us as he was a member of our own extended family. For over a dozen years, Peg has been our CFO and partner, and helped us build Jefferies from less than half its current size, and navigate through hard times and good times. He has also been a much-loved and respected leader to the incredible global team that provides the support, foundation and glue across our firm. But Peg was so much more. Part of what made Peg the great partner he was to all of us was his core humanity. No matter what the occasion, his decency, calmness and dry wit were always there, always making things better. We will miss him terribly.

We know Peg would want his passing to serve as a reminder to all of us of how much he cared for all of his friends at Jefferies and that our priority must be the health and happiness of our loved ones. May Peg’s memory be for a blessing for his family, for us and for all who loved him.’”

Teri Gendron, CFO of Jefferies Financial Group, has been appointed as the interim CFO and Chief Accounting Officer of Jefferies Group LLC.

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.

Berkadia Appoints David Leopold as Head of Affordable Housing

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has appointed David Leopold as Senior Vice President and Head of Affordable Housing.

Leopold will lead Berkadia’s Affordable Housing team, a national platform that provides mortgage banking, investment sales and tax credit syndication services. He will report to Hilary Provinse, Executive Vice President and Head of Mortgage Banking.

“We are thrilled that David is joining Berkadia,” said Berkadia CEO Justin Wheeler. “He brings unparalleled experience in affordable housing and excitement and energy for the opportunities that lie ahead. Berkadia is committed to providing solutions to meet the critical need for affordable housing in communities across the country—something David has dedicated his career to. He is the perfect leader to spearhead our strategy to build the dominant presence in the affordable housing market, and we’re lucky to have him.”

At Freddie Mac, Leopold served as Vice President for Targeted Affordable Sales and Investments for the multifamily business. During his tenure, Leopold grew Freddie Mac’s annual affordable housing production from just over $2 billion in 2014 to about $9 billion, made up of new mortgage originations and structured finance. At the same time, he led the organization’s reentry into the tax credit equity market. He was also the primary contact with housing finance agencies, municipalities and community-based organizations for Freddie Mac Multifamily’s affordable housing and community development products and services.

“Berkadia has been making bold moves in the affordable housing space, adding talent and strategic capabilities to build a platform that is truly an industry leader,” said Leopold. “I’m excited to join this growing team and to bring my experience to bear to continue to fuel its exponential growth. There is a tremendous need for new and creative solutions to the complex challenges in the affordable housing landscape, and I’m excited to tackle those challenges at the helm of Berkadia’s talented Affordable Housing team.”

Prior to his tenure at Freddie Mac, Leopold led Tax Credit Equity Origination for Bank of America Merrill Lynch, where his team produced $1.2 billion in annual equity investments in low-income housing, historic and new markets tax credits. Prior to that, he managed Bank of America’s Community Development Lending platform, where he was responsible for $1.6 billion in annual loan originations and a portfolio of $4 billion in real estate secured assets.

Leopold has undergraduate and graduate degrees with honors from Fordham University and the University of Colorado, respectively.

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.

Berkadia Arranges $47 Million Sale of Apartment Community in Broward County, Florida

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has arranged the sale of 72 West, a 291-unit, Class B multifamily community located in Tamarac, Florida.

Managing Directors Roberto Pesant and Jaret Turkell of Berkadia’s Miami office, and Director Yoav Yuhjtman of Berkadia’s Boca Raton office, arranged the sale on behalf a New York-based investment group.

A Canadian investment group acquired the property for $47 million.

“The seller bought this property as a fractured condo (222 out of 291 units) in 2016 for $22 million, and has since fully executed its strategy to buy back the privately owned units, collapse the HOA, and stabilize and rebrand the property as 72 West,” said Yuhjtman. “With occupancy at 95.5 percent in this submarket and no new deliveries in the immediate area this year, the new owner has an opportunity to capture some upside from growing demand for high-quality apartment rentals in western Broward County.”

Located at 8650 NW 61st Street in Tamarac, 72 West was built in 1987 and consists of one- and two-bedroom apartments ranging from 756 to 899 square feet. The asset is comprised of nine buildings; six are three-story, garden-style elevator served buildings and three are single-story villas with semi-private entrances and patios. Amenities include two clubhouses with pools.

72 West is ideally located within five minutes of the Sawgrass Expressway and 10 minutes from Florida’s Turnpike, and feeds into the highly rated Coral Springs public school system. The property is close to Sawgrass Mills Mall and the BB&T Center, and just a 30-minute drive to the Boca Raton and Plantation employment markets.

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.

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.

Berkadia Adds Tax Credit Syndication and Advisory Platform

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has expanded its affordable housing capabilities with the addition of a tax credit syndication and advisory platform.

This team of specialized experts comes from Riverside Capital, in which Berkadia invested in 2018. The integration will offer clients access to the already robust Berkadia Affordable Housing team and add tax credit syndication services, advancing the goal of offering developer clients access to seamlessly integrated solutions for all of their affordable housing capital needs.

“This expansion not only gives Berkadia the opportunity to cement our position as a leader in the affordable housing space, but it allows us to dig even deeper and better serve a specialized niche of developers and investors who are working diligently to meet the need of additional affordable housing units across the country,” said Berkadia CEO Justin Wheeler. “Riverside has a solid record of success in providing capital solutions to the affordable housing industry’s leading development companies, so this additional capability will benefit Berkadia and Riverside customers alike, particularly as we pursue an aggressive growth strategy in the affordable housing market.”

Since the collaboration with Riverside began in 2018, Berkadia has expanded its capabilities in the affordable space with the strategic hiring of mortgage bankers and investment sales advisors across the country, in addition to tax credit equity placement through Riverside as well as conventional joint venture equity solutions.

“According to NLIHC’s April report, there are 11 million extremely low-income renter households and only 4 million affordable and available units, leaving a shortage of 7 million units,” stated Sebastian Corradino, former Riverside President and CEO and current Senior Managing Director on the Berkadia Affordable Housing team. “As Berkadia, we will continue to partner with investors and developers to reduce the affordable housing gap, fulfilling the business objective to do well with the social imperative to do good. Our entire team is incredibly excited to now be part of the Berkadia Affordable Housing platform.”

“The former Riverside acquisitions, investor relations and asset management teams will continue to provide the exceptional, personalized level of service our clients expect while also giving them access to new opportunities the Berkadia network offers,” said Corradino.

In 2018, Berkadia’s loan origination volume surpassed $26 billion while its investment sales platform totaled over $8 billion.

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.

Berkadia Secures $93M Financing for Multi-Family Property in Metro D.C.

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has arranged a $92.7-million loan to refinance Woodbridge Station, a garden-style multifamily community in Woodbridge, Virginia.

Woodbridge is approximately 22 miles south of Washington, DC.

Located at 1400 Eisenhower Circle, the community features two-, three- and four-bedroom apartments with full-size washers and dryers in-unit. Amenities include a swimming pool with a sun deck, 11 community playgrounds, hiking and jogging trails, a tennis court, dog park, grilling areas and storage units.

Jonathan Pratt and Rossana Bouchaya of Berkadia’s Washington, DC office secured a seven-year, interest-only Fannie Mae loan with a 70% loan-to-value ratio on behalf of the borrower, Washington, DC-based developer and operator Foulger-Pratt. The deal closed July 31.

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.

Berkadia Provides $47.2M Construction Loan for Dallas Multifamily Property

(BRK.A), (BRK.B)

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.

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.

Berkadia Arranges Sale of 360-Unit Apartment Community in San Antonio

(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.

Berkadia Arranges $50M Refinancing for Pan American Life Center

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has arranged the $49.8-million refinancing loan for the Pan American Life Center, a 28-story office building in New Orleans.

Located at 601 Poydras Street, the property consists of 674,000 square feet of leasable office space. On-site features and amenities include building management, a covered parking garage and a full-service restaurant. The building’s Conference Center also features a 24,451-square-foot multi-purpose facility, and a 252-seat theater-style auditorium.

Berkadia’s Andy Coleman secured the financing on behalf of the borrower, Louisiana-based Stirling Properties through lender Wells Fargo. The loan features a 10-year, fixed-rate term and a 25-year amortization schedule.

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.