Category: Berkadia

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the $16.7 million sale of Abbey Court, and the $31 million sale of Legends at Charleston Park, two garden-style multifamily properties in Belmont, North Carolina and North Charleston, South Carolina, respectively.

Managing Director Mark Boyce and Associate Director Blake Coffey of Berkadia’s Charleston, South Carolina office led both sales.

Berkadia completed the sale of Abbey Court on behalf of the seller, American Residential Investment Management of Raleigh, North Carolina. The buyer was Napali Capital, LLC of Southlake, Texas. The deal closed on July 31.

“Abbey Court has historically been a well performing and well-maintained asset,” said Boyce. “Napali Capital will continue with that trajectory and can implement a light value-add strategy to the interiors as they move forward with the ownership. This transaction is a great example of the demand we’re seeing for quality multi-family assets in secondary markets of major southeastern cities.”

The Legends at Charleston Park sale was completed on behalf of the seller, United Residential Properties, LLC of Macon, Georgia. The buyer was Fogelman Properties of Memphis, Tennessee, and the deal closed on August 1.

“Legends at Charleston Park represented a great opportunity for Fogelman to acquire a well-constructed asset exhibiting strong performance in an increasingly growing area of North Charleston,” said Boyce. “We continue to see strong demand for well-located multifamily assets throughout the Carolinas.”

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 $94.2 million in combined financing for Avana Stonebriar, Avana McKinney Ranch and Avana Point, three multifamily garden-style properties located in the Dallas-Fort Worth, Texas area.

Managing Director Andy Hill and Associate Director Tyler Nowlin of Berkadia’s Austin, Texas office secured the financings through Freddie Mac for the acquisition of the properties.

For Avana McKinney Ranch, the team secured $35.19 million in financing for Blue Atlantic McKinney Ranch, LP.

Berkadia secured a seven-year $30.01 million loan for Avana Point on behalf of Blue Atlantic Point, LP.

Avana Stonebriar received $29 million in financing for the borrower, Blue Atlantic Stonebriar, LP.

“We were pleased to work with Atlantic Pacific Companies and Freddie Mac to structure acquisition financings for these three assets under Freddie’s Green Up Program and close within 32 days of signing the loan applications,” said Hill. “In addition to investing in energy conservation improvements, the borrower plans to complete significant capital improvements at all of the properties to elevate their positions within their respective markets.”

Avana McKinney Ranch is located in McKinney, Texas and features 343 units of one, two- and three-bedroom floor plans, as well as attached and detached garages or carports. Residents also have access to a clubhouse, a business center, a pool and spa, a cyber café and an outdoor cabana with a grill. Within 30 days of closing, the property will be renamed The Atlantic McKinney Ranch.

Avana Point is located in Fort Worth, Texas, and the property features 324 units of one-, two- and three-bedroom floor plans. Residents can also enjoy a clubhouse, a fitness facility, a pool and spa, a sand volleyball court and covered parking. The owner plans to rename the property.

Located in The Colony, Texas, Avana Stonebriar features 294 units of one-, two- and three-bedroom floor plans. The property features a clubhouse, a pool, a fitness room and a playground. Within 30 days of closing, the property will be renamed The Atlantic Stonebriar.

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 $47.675 million in acquisition financing for Veve at Castle Hill, a 328-unit multifamily community located in the Clermont submarket of Orlando.

Senior Managing Director Charles Foschini, Managing Director Christopher Apone and Senior Analyst Lourdes Carranza-Alvarez secured the loan on behalf of Advenir, a real estate investment and management firm based in Miami.

“The Orlando MSA has proven to be a well-established multifamily market for numerous reasons. With an economically diverse center for business, excellent location in central Florida and moderate cost of living, the area will continue to attract investment as strong market performance is expected despite rising interest rates,” said Foschini. “Orlando’s below state average unemployment rate and exponential growth trend create exceptional fundamentals for a flourishing multifamily market.”

Freddie Mac originated the 10.5-year loan with 10 years interest only. The LTV ratio was 70 percent.

Built in 2017, Veve at Castle Hill is located at 13600 Hartle Groves Place. One-, two-, and three-bedroom units feature faux wood plank flooring, raised panel interior doors with brushed nickel hardware, washer and dryer, chef-inspired kitchens, and high-end European-style vanity doors with brushed nickel hardware. Community amenities include a 4,200-square-foot swimming pool, sun deck with cabanas, fire pit, massage room, clubhouse and 24-hour fitness center.

Situated in the Clermont submarket of the Orlando MSA, Veve at Castle Hill is found near important transit routes and employment hubs. Florida’s Turnpike and West Colonial Drive are less than 10 minutes away, providing easy access to downtown Orlando and Orlando International Airport. Universal Orlando is less than 30 minutes away and Walt Disney World is under 40 minutes away from the community, offering close proximity to major economic drivers.

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 $18.1 million sale of Artiste Portfolio, three multifamily properties located in Los Angeles, California.

Senior Managing Director Brent Sprenkle of Berkadia’s Los Angeles office led the portfolio sale on behalf of the seller, New York-based Urban Smart Growth. The buyer was Los Angeles-based Prana Investments, and the deals closed on March 7.

“The properties were a unique portfolio of three value-added apartment buildings that were held by the same owner for over 25 years,” said Sprenkle. “The properties were heavily renovated approximately 15 years ago, but the renovations are dated, and the buildings are ready for cosmetic upgrades that will allow the new owner to achieve not only higher lease rates but also improved operations and occupancy.”

Properties sold include:

• 5406 Lexington Ave. sold for $7.6 million at a per-unit price of $180,952, representing $303 per square-foot, a 4.55 percent cap rate and 12.81 GRM.
• 109 S Normandie Ave. sold for $5.75 million at $249 per-square-foot, $159,772 per-unit, a 4.55 percent cap rate and 12.07 GRM.
• 245 N Kenmore Ave. closed at $4.75 million with a 4.76 percent cap rate and 12.11 GRM. The buyer received a per-unit price of $158,333 at $308 per square-foot.
Totaling 108-units, all three properties in the portfolio are conveniently located in northeast Los Angeles. Each offer convenient access to Route 101, Route 10 and Route 110.

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 $156.56 million in Fannie Mae financing on behalf of Realty Center Management for a portfolio of four multifamily properties throughout California.

Senior Director Branden McBirney, Associate Director Garrett LaBar and Senior Analyst Vickie Wible led the team in the deal, which closed on November 30.

Three of the 10-year permanent fixed rate loans featured a 3.64 percent interest rate, a 55 percent loan-to-value ratio and full-term interest only payments. The fourth loan featured a 4.05 percent fixed rate, a 75 percent loan-to-value ratio and three years of interest only payments. The loans were placed as a portfolio but were not cross-collateralized. The proceeds were used to refinance existing debt on the properties.

“We were excited to provide another seamless execution on behalf of our client,” said McBirney. “In order to secure very advantageous pricing, we were required to close all four loans simultaneously on the same day.”

Properties financed include:

• Overlook at Blue Ravine is located at 1200 Creekside Drive in the Sacramento suburb of Folsom, California. The property, which features a basketball court, a clubhouse, a fitness center, a putting green and a tennis court, received $88.6 million in financing.

• Americana South Bay is a luxury apartment complex in Torrance, California. The property, which features one-, two- and three-bedroom floor plans, received $32.3 million in financing and is located at 20707 Anza Ave.

• Hollywood Place Apartments is located in Hollywood Hills at 7400 Hollywood Blvd. and features studio, one- and two-bedroom apartments with fireplaces, hardwood floors, granite countertops, private storage and patios and balconies. Berkadia secured $20.8 million in financing for the property.

• Regency at Sherman Oaks was recently redesigned and features many property amenities, such as a pool, a fitness center, a sauna and a barbeque area and is located at 4616 Willis Ave. in Sherman Oaks, California. The Los Angeles team secured $14.6 million for the refinancing.

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.

© 2017 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 financing totaling nearly $1 billion for the acquisition of the Beacon multifamily property portfolio.

Managing Directors Laura Cathlina and Sharon Plattner of Berkadia’s Chicago office secured the Freddie Mac loan on behalf of affiliates of Harbor Group International. The deal closed on November 30.

“Our team was pleased to have been given the opportunity to assist Harbor Group International with the financing of this exclusive portfolio that supports their diversified investment strategy,” said Cathlina. “The end result was a creative multi-faceted loan structure which will provide Harbor a significant amount of flexibility for future decision making. Our partners at Freddie Mac did an outstanding job in working with us to structure this transaction.”

The Freddie Mac financing encompasses 16 properties located in Boston, Baltimore, Chicago, Washington D.C. and Philadelphia, which are part of an overall 25 property portfolio. Eleven of the properties were financed with a fixed rate vehicle for over $789 million. The remaining five properties were financed with a floating rate vehicle for over $138 million.

“The acquisition of the Beacon portfolio represents a milestone transaction for Harbor Group International (HGI) as we continue to grow our investment portfolio,” commented T. Richard Litton, Jr., HGI president. “We are very appreciative of Berkadia’s work on our behalf to structure almost $1 billion of Freddie Mac fixed and floating rate debt.”

Since the beginning of 2017, Berkadia’s mortgage banking team has closed over $19 billion in production volume – an increase of 22 percent compared to the previous year. In 2016, Berkadia’s loan origination volume was $20 billion, ranking first with U.S. Department of Housing and Urban Development, second with Freddie Mac and fourth with Fannie Mae in delivered loan volume.

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. In 2016, Berkadia’s loan origination volume was $20 billion, ranking first with U.S. Department of Housing and Urban Development, second with Freddie Mac and fourth with Fannie Mae in delivered loan volume—the only lender in the top four for all three organizations.

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.

© 2017 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 addition of prominent industry veteran Hilary Provinse as Executive Vice President and Head of Mortgage Banking. She will oversee a team of 130 experienced mortgage bankers located in 31 offices across the country. Ms. Provinse will be a member of Berkadia’s Management Committee and report to Ernie Katai, Executive Vice President and Head of Production. She joins Berkadia from Fannie Mae after a 15-year career, where she most recently served as Senior Vice President and Head of Multifamily Customer Engagement.

“We are extremely fortunate to have Hilary join the Berkadia team,” said Berkadia CEO Justin Wheeler. “With more than 20 years of experience and leadership in CRE capital markets, she is a dynamic leader and forward thinker. Her positive energy and relentless drive to perfect the customer experience will continue to push our platform to new levels. A talent of her caliber is an incredible addition.”

Most recently at Fannie Mae, Provinse led a team of 85 professionals in offices across the country, overseeing all of Fannie Mae’s multifamily debt lending activities and customer engagement. She oversaw Fannie Mae’s transformation to a relationship-based, customer-centric sales organization and led the multifamily production team to double their production volume over a four-year period.

“I could not be more excited to join Berkadia, a client-first organization that provides holistic commercial real estate solutions through its integrated mortgage banking, investment sales and servicing platform,” said Ms. Provinse. “While at Fannie Mae, I saw Berkadia investing in its people and culture and focusing on innovation, process and technology to grow its mortgage banking footprint exponentially to better serve customers, and I’m thrilled to have the opportunity to build upon that success.”

Prior to her tenure at Fannie Mae, Ms. Provinse spent nearly a decade on Wall Street in investment banking and fixed income trading at Goldman Sachs and Bear Stearns. She earned a Bachelor’s degree from Dartmouth College and a Master of Business Administration degree from Northwestern University’s J.L. Kellogg Graduate School of Management.

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. In 2016, Berkadia’s loan origination volume was $20 billion, ranking first with U.S. Department of Housing and Urban Development, second with Freddie Mac and fourth with Fannie Mae in delivered loan volume—the only lender in the top four for all three organizations.

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.

© 2017 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 financing of a $41 million first mortgage for The Woods at Blue Heron Pines, a multifamily community in Galloway Township, New Jersey. Managing Director Jim Badolato and Senior Analyst Patti Henne of Berkadia’s Philadelphia office structured the financing through the firm’s partnership with Freddie Mac. The borrower is an entity controlled by DiLucia Management, a Pennsylvania-based management company.

Utilized to refinance a maturing loan, the new 10-year financing carries a sub-4 percent fixed interest rate and five years of interest only.

“DiLucia’s long-term commitment to the asset and its residents is evident, making this an ideal lending opportunity for Berkadia,” said Badolato. “Freddie Mac understood the fundamental strengths of the property and location. Despite proximity to Atlantic City, there is a diverse base of employment drivers and a limited supply of quality rental housing in the area. Major employers within five miles of the property include AtlantiCare’s headquarters, AtlantiCare Regional Medical Center, Stockton University, Atlantic City Airport and the Federal Aviation Administration William J. Hughes Technical Center, which employs over 2,500 people.”

The Woods at Blue Heron Pines is located at Bally Bunion Drive, affording convenient access to the Atlantic City Expressway and the Garden State Parkway. The Class A community has 330 units on over 58 acres with views of Ron Jaworski’s Blue Heron Pines Golf Club. The property features large floorplans averaging 1,458 square feet, each with a private garage. Developed by DiLucia in 2001, the asset is in excellent condition and has consistently performed at over 95 percent occupancy.

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.

© 2017 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)

A joint venture led by Manchester Financial Group has engaged Berkadia Hotels and Hospitality to source a $650 million construction loan on the Manchester Pacific Gateway development.

The project is situated on San Diego’s waterfront and is the largest undeveloped urban waterfront site on California’s coast. The $1.3 billion project will include 2,823,188 million square feet of hotel, office and retail space in San Diego’s thriving downtown business district.

Berkadia’s Hotels and Hospitality group has been tasked with sourcing a 50 percent LTC non-recourse construction loan that will close by year end 2017. Berkadia Senior Managing Director Andrew Coleman and Managing Director Jackson Cloak will lead the team’s efforts.

Manchester Financial Group has extensive experience in developing convention center hotels and other commercial real estate, having developed more than $2 billion in assets in 11 states, including the Manchester Grand Hyatt San Diego, the 1,360-room San Diego Marriott Marquis & Marina, and the 249-room The Grand Del Mar—California’s only Forbes Triple Five Star resort. The company is currently in construction on the 1,066-room Fairmont convention hotel in Austin, Texas.

The property will include 1,205,490 square feet of office space, 391,231 square feet of retail space, 2,437 parking spaces, a 260-room boutique hotel, and will be anchored by an 1,100-room Four Seasons hotel.

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.

© 2017 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.