Category: Berkadia

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has announced the $26 million sale of The Preserve at Collier Ridge, a 419-unit garden-style multifamily property in Fulton, Georgia.

Managing Directors Andrew Mays and Paul Vetter, Senior Director Judy MacManus and Director Matthew White of Berkadia’s Atlanta office completed the sale on behalf of the seller, Atlanta-based DRI Legacy, LLC.

The buyer was Montreal-based Frankforter Group.

“The property is located in a newly registered “Opportunity Zone” and proximate to the new $460 million UPS distribution facility which contributes to a strong value-add story for the property,” said MacManus.

“Currently 100 percent affordable with qualified contract eligibility, Preserve at Collier Ridge is a Section 42 LIHTC community that is eligible for market-rate conversion in 2021 and allows new ownership to benefit from substantial upside in the near future,” added White.

The Preserve at Collier Ridge features one-, two- and three-bedroom floor plans with dishwashers, garbage disposals, air conditioning and private balconies. Community amenities include a pool, a playground, laundry facilities and a picnic area. The new ownership plans to upgrade the existing fitness center and add both a business center and a community room. Located at 1021 Harwell Road NW, the property affords convenient access to Interstate 285.

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.

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has announced the sale and financing of a 399-unit garden-style multifamily property in Fort Worth, Texas.

Managing Directors Jay Gunn and Tom Burns, along with Senior Directors Taylor Hill, Michael Ware and William Jarnagin, all of Berkadia’s Dallas office completed, the sale on behalf of the seller Atlanta-based Cortland. The buyer was Houston-based Hilltop Residential.

The deal closed on February 5.

“This was a unique community with value-add potential, and as such, we experienced higher-than-normal levels of interest and tour activity,” said Gunn. “We continue to see strong investor demand flow to the Fort Worth side of the metroplex.”

Director Nicholas Murphy of Berkadia’s Houston office secured acquisition financing through Wells Fargo for Hilltop Residential. The three-year interest-only loan features a floating rate and a 65 percent loan-to-value ratio.
“Berkadia identified a capital partner who shared the same vision as the borrower and had a lending program that aligned with the borrower’s business plan,” said Murphy. “The lender agreed to finance 100 percent of the capital improvement plan and close in a short time frame, creating a perfect financing vehicle to facilitate the transaction.”

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.

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has announced the $100 million financing secured for Ernst & Young Office Tower, a 23-story office property in downtown Cleveland.

Senior Managing Director Mark Vogel and Associate Director Eric Bevilacqua of the Cleveland office secured the refinancing through JP Morgan with mezzanine debt from Axonic, on behalf of Ohio-based The Wolstein Group.

The deal closed on December 6.

The two-year permanent refinancing features an adjustable interest rate, three one-year extension options, an 80 percent loan-to-value ratio and interest only payments.

“We were honored to work through this complicated transaction on behalf of The Wolstein Group and are thrilled with the resulting financing terms,” said Vogel.

Located at 950 Main Ave., Ernst & Young Office Tower offers convenient access to the area’s restaurants, commuter rail and the waterfront district of Cleveland. The property features 465,000 square feet of leasable office space, and on-site amenities include garage parking, a dry cleaner, a fitness center and a concierge. The building was 95 percent occupied at the time of the financing.

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.

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has announced that Berkadia Commercial Mortgage, Jefferies and Riverside Capital have facilitated the financing of Fairwood Apartments, a garden-style multifamily property in Carmichael, California (Sacramento County).

The deal consists of a $12.6 million Tax Exempt Fannie Mae Mortgage Backed (M-TEBS) bond transaction with four percent low-income housing tax credits (LIHTC), which funded approximately $6.4 million in equity. As part of the deal, the project will have a new 20-year HUD rental assistance contract, meaning that none of the 86 households will have to pay more than 30 percent of their income towards rent. The closing of this financing preserves Fairwood Apartments as an affordable housing asset for the long-term.

The financing is the first such transaction involving all three affiliated firms, each playing a critical role in their respective specialty areas. The bonds were issued through the California Housing Finance Agency (CalHFA) for affordable housing developer Orbach Affordable Housing Solutions, LLC (OAHS). A single-purpose corporation controlled by OAHS, called OAHS Fairwood LP, is the owner. The deal closed on November 29.

Berkadia’s Senior Director Gemma Geldmacher and Managing Director Richard Price originated the financing, teaming up with Managing Director Lloyd Griffin, Senior Director Frank Brown and Senior Underwriter Mark Field to underwrite the Fannie Mae M-TEBS DUS loan. Alan Jaffe and Robert Foggio were the lead investment bankers for Jefferies, and Riverside Capital’s team syndicated the tax credits.

The combination of debt and equity raised by the Berkadia-led team will provide sufficient funds to acquire the project and allow for approximately $3.4 million in rehabilitation – including updates to residential units and system upgrades.

“The Fairwood financing was an ‘all hands-on deck’ deal,” said Price. “The team worked hand-in-glove with CalHFA, which demonstrated unwavering support in further fulfilling its preservation of the affordable housing mission. HUD also played a key role in approving the long-term subsidy contract and assigning it to the project.”

“In California, homeowners spend the highest amount of their annual income on housing and continually struggle to pay their rent,” said Jay Reinhard, President of OAHS. “This is why we are committed to improving the housing market so that Americans can live without the fear of losing their homes. We are honored to be involved in this great project.”

The pass-thru fixed rate on the bonds was 3.75 percent with a loan term of 15 years underwritten and a 35-year amortization. Fannie Mae yield maintenance premium from closing is through May 31, 2033. Thereafter, a one percent prepayment penalty will apply through August 31, 2033. After this, no prepayment premium will apply. The loan was debt service constrained at 1.15 times the debt service coverage ratio.

Located in the Fair Oaks neighborhood of Carmichael, the project was originally developed in 1981 and has a mixture of one-, two- and three-bedroom units. Carmichael is less than ten miles away from downtown Sacramento in an area that has seen tremendous growth in the past decade.

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.

© 2018 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.

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has announced the closing of $327 million in fixed and variable rate financing for Brookdale Senior Living, Inc.

Berkadia’s Senior Managing Directors Heidi Brunet and Lisa Lautner of the Seniors Housing & Healthcare team originated the transaction through Freddie Mac’s new Structured Pool Transaction program.

The deal closed on November 16 and will be used to refinance 28 senior housing facilities representing approximately 2,200 units.

The ten-year, non-recourse Structured Pool Transaction features fixed and variable rate loan components and a 30-year amortization schedule. The fixed rate component was $213 million and the variable rate component was $114 million.

The property was financed through Freddie Mac’s Green Advantage program, which provides competitive pricing to finance upgrades that reduce energy or water consumption.

In 2017, Berkadia’s Seniors Housing team completed more than $1.7 billion in loan volume, including closing over $1 billion in financings in a single day.

Berkadia’s Seniors Housing & Healthcare group leads the industry in innovative and comprehensive solutions for even the most complex independent living, assisted living, memory care and skilled nursing projects across the country.

In addition to deep market knowledge, the group offers a full set of advisory, underwriting, loan origination services and products including FHA, Fannie Mae, Freddie Mac, Life Company, Proprietary Bridge Lending and Capital Markets Advisory Services.

Last year, the team expanded its capabilities by adding an investment sales presence, rounding out its full-suite of services.

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 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.

© 2018 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.

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has arranged the sale and financing of Carriage Hills Apartments, a 260-unit apartment complex in Pensacola, Florida.

Michaelson Group, which also purchased a 104-unit Tampa Bay community for $10 million earlier this summer, has acquired the property for $22 million in an off-market transaction from The Hallmark Cos.

The acquisition involved a $16.5 million, 12-year fixed-rate loan, with six years of interest only at a 75 percent loan-to-value.

Berkadia facilitated both sides of the transaction, with Cole Whitaker of Berkadia’s Orlando office and David Etchison of the Panhandle office represented the seller, and Mitch Sinberg and Matt Robbins of the company’s South Florida office, along with Bob Falese and Jeremy Lynch of the Philadelphia office, secured financing through Freddie Mac on behalf of the buyer.

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 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.

© 2018 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.

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the $45 million financing for Powers Industrial Portfolio, an industrial property in Danbury, Connecticut.

Managing Director Yuri Kletsman of the New York office secured the permanent refinancing through Citigroup on behalf of Delaware Commerce Park, LLC. The deal closed on October 26.

The 10-year loan features a 6.40 percent fixed interest rate blended between a senior and mezzanine loan structure. It also features an 80 percent loan-to-value ratio
.
The portfolio is a mix of industrial and warehouse buildings.

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 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.

© 2018 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.

(BRK.A), (BRK.B)

The Phoenix office of Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the $78 million financing for six hotel properties in a portfolio of eight total hotel properties.

Director Adrienne Kautzman of the Phoenix office secured the acquisition bridge loan through Ares Commercial Real Estate Corporation (NYSE:ACRE). The borrower was a partnership led by PEG Companies, and the deal closed on September 7.

“PEG’s investment thesis coupled with our deep lending relationships and knowledge of the hospitality space allowed us to facilitate flexible and competitive financing on these six hotels to provide various exit strategies for the PEG team,” said Kautzman.

The properties include Residence Inn by Marriott and Courtyard by Marriott hotels located in St. Petersburg, Florida; Sacramento, California; Santa Fe, New Mexico; Charlotte, North Carolina; Phoenix and St. Louis, for a total of 828 hotel rooms.

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 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.

© 2018 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.

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the recent financing of Egate Apartments, a garden-style multifamily property in Salt Lake City. Senior Managing Director Kevin Kozminske of the St. Louis office and Managing Director Art Tuverson of the San Clemente, California office secured the 35-year permanent refinancing on behalf of Utah-based EGate Partners LLC. The deal closed July 26.

The loan, secured through the HUD FHA 223(F) program, features a fixed interest rate at 3.40 percent.

“We are excited to get Egate Apartments closed,” said Kozminske. “It was an excellent transaction for HUD providing work force housing in the market.”

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 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.

© 2018 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.