Category: Berkadia

(BRK.A), (BRK.B)

Berkadia has announced the financing of York Brook Apartments, a multifamily property located at 100 E. George Street in Bensenville, Illinois.

Managing Directors Len Deering and Paul Matusiak of the Chicago office negotiated the 35-year, fixed-rate refinancing loan for the borrower, YB Partners.

The $44.08 million loan was originated through Berkadia’s HUD/Federal Housing Administration program. The loan features an 80 percent loan-to-value ratio and a 35 year amortization schedule.

“Our team was quite familiar with this repeat client and carefully worked to obtain attractive terms that met their needs,” said Deering. “An uptick market-wide occupancy coupled with rising asking rent prices makes Chicago an attractive market, one that is expected to see more upside for the duration of 2016.”

The 571-unit property sits on nearly 28 acres of land and was 98 percent occupied at the time the loan was secured. Located approximately eight miles southwest of Chicago O’Hare International Airport, York Brook Apartments offers one- and two-bedroom floorplans and unit amenities such as open kitchen plans, individually controlled heat and air conditioning, private patios and balconies, dishwashers, garbage disposals and furnished rental options. The community, set in a park-like area that includes a lake, offers tennis courts, pools, storage lockers, fitness centers, a laundry facility, free aerobics classes and 24-hour maintenance.

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 was among the top Freddie Mac and Fannie Mae multifamily lenders for 2013.

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.

© 2016 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)

In 2015, Berkadia, Berkshire Hathaway’s joint venture with Leukadia, was the second largest Freddie Mac Program Plus lender and the third largest Fannie Mae DUS lender for multifamily loans.

Berkadia arranged $6.35 billion with Freddie Mac in 2015, up from $4.4 billion the year prior, which was the fourth consecutive year that the company has been named the second largest lender.

Berkadia was also in the number one spot as the top DUS Producer for seniors housing in 2015 by Fannie Mae, up from second in 2014, as well as the top Program Plus Seller in the Western Region by Freddie Mac for the second year in a row.

“Berkadia’s rankings speak volumes to our teams’ deep expertise and dedication to delivering the best financing across the country,” said Berkadia CEO Justin Wheeler. “We are extremely proud of our continued performance and strong record as a top Fannie Mae and Freddie Mac lender, and we look forward to building upon our momentum in 2016.”

In 2015, Freddie Mac provided nearly $47 billion in multifamily loans, accounting for 650,000 units. Fannie Mae settled $42.3 billion in financing for the multifamily market, comprising 569,000 multifamily units.

© 2016 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)

Berkshire Hathaway’s joint venture Berkadia, a leading commercial real estate company, has hired an eight-person multifamily investment sales team in Houston.

The team previously worked together in CBRE’s Capital Markets Multi-Housing Group based in Houston, where they focused on Houston, San Antonio and other Texas markets. All will report to Head of Investment Sales Keith Misner, effective immediately.

“This group of individuals is known throughout the industry as one of the top multifamily investment sales teams in the country, specifically in Houston,” said Keith Misner. “Adding a team of this caliber—which has worked together for a number of years—immediately strengthens our Texas presence. We’re truly excited for them to join Berkadia.”

The team is led by Senior Managing Director Ryan Epstein and Managing Director Clint Duncan and includes Associate Directors Wes Breeding and Jennifer Ray. They will work closely with Berkadia’s existing brokers and mortgage bankers in Houston and across the state to provide integrated investment sales, mortgage banking and servicing solutions.

“Berkadia is one of a kind because its platform strengthens the company’s ability to offer clients comprehensive real estate solutions,” said Epstein. “Our entire team looks forward to elevating the company’s presence in Texas and leveraging a full suite of products to help current and future clients alike.”

Since 2006, the team has marketed and sold assets valued at more than $4.5 billion and has continually been ranked as top producers nationally, working with a diverse client base of REITs, pension funds, private investment companies and local and national developers.

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 was among the top Freddie Mac and Fannie Mae multifamily lenders for 2013.

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.

© 2016 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 has announced the recent sale of Artisan Apartments, a 275-unit multifamily property located at 15555 Huntington Village Lane in Huntington Beach, Calif. Senior Directors Shane Shafer and Peter Hauser of the Irvine office negotiated the sale, which closed at $87.5 million on December 10, 2015.

The seller was Kennedy Wilson and the buyer was Domino Realty Management Company, Inc., both based in Beverly Hills. The sale price reflects a per-unit price of $318,181. Additionally, Managing Director Allan Freedman of Berkadia’s Los Angeles office assisted with the assumable financing.

“Quality of life, the strong job market and healthy apartment operations continue to support robust investment activity in the Orange County multifamily market,” said Keith Misner, head of investment sales. “Activity is brisk in the area, so Berkadia’s regional team of investment advisors and mortgage bankers collaborated quickly to execute this deal on time for both the buyer and the seller.”

“Kennedy Wilson purchased the property in June of 2012. During their time as owners, they added value to the asset through interior and exterior renovations and, as the submarket improved, was able to realize a substantial return through this sale,” said Shafer.

“Domino Realty purchased the property as a long-term hold in anticipation of the property’s appreciation and to take advantage of current cash flow and tax benefits. It also is conveniently located near additional Domino Realty-owned assets within Orange County, creating strong management economies between properties,” said Shafer.

Domino Realty plans to continue renovations to the property’s interiors, while adding additional common area amenities in order to meet renter demand and fuel strong future rental growth.

Built in 1977, Artisan’s unique layout combines three different designs: urban mid-rise units over podium parking, two-story, garden-style apartments and two-story townhouse style apartments. The 275-unit property features one- and two-bedroom floor plans. Unit amenities include fully equipped kitchens with granite countertops and stainless steel appliances, gas fireplaces, walk-in closets, cable access and balconies or patios. Community amenities include two heated swimming pools, laundry facilities, tennis courts, a fitness center, barbeques, and gated community access. The property was 97 percent occupied at the time of sale.

“Rarely does an apartment asset of this size sell in the coastal sub-market of Huntington Beach,” Hauser added. “Due to its locale, quality condition and unique unit designs, Artisan was a highly attractive investment opportunity that generated a lot of buyer interest.”

The Artisan, located near the 405 and 22 freeways and adjacent to the newly renovated Bella Terra Mall. The property is also within six miles of popular beaches and 11 miles from Disneyland. Top employers in the area include Fountain Valley Regional Hospital, StorCase Technologies Inc., IBM, Zodiac Aerospace and Hyundai corporate headquarters.

Orange County area vacancy rose 40 basis points to 4.2 percent by the end of 2015. The average asking rent increased 4.4 percent year-over-year to an average of $1,955 per month.

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 was among the top Freddie Mac and Fannie Mae multifamily lenders for 2013.

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.

© 2016 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 has announced the $16.8 million sale of a multifamily property and development parcel known as The Mark, in Tempe, Arizona.

Located at 1115 E. Lemon Street, near Loops 101 and 202, the community is within walking distance from Arizona State University (ASU), and caters to student renters.

The buyer, Nelson-Brothers of Aliso Viejo, California, is a national student housing firm that looks to acquire assets at major universities and saw the opportunity to further enhance the community and build its brand near ASU. The seller, Sundance Bay of Salt Lake City, had previously purchased the property as a distressed asset and completed a full renovation and rebranding.

Berkadia’s Vice President Dan Cheyne, Senior Managing Director Mark Forrester and Managing Director Ric Holway of the Phoenix office, as well as Managing Director – Student Housing Kevin Larimer of the Detroit office, closed the sale on November 23.

The Mark features 161 units with studio, one- and two-bedroom floor plans. Built in 1970, the property is currently 98 percent occupied and master-metered for HVAC. The Mark offers unique, renovated and retro style apartment homes featuring polished concrete floors, quartz countertops and fully renovated kitchens and baths. Community amenities include a swimming pool, sundeck, student lounge, fitness center, courtyard with barbecue grills and elevator access.

“Nelson-Brothers was attracted to the area’s rent-growth potential, as well as the asset’s strong location near ASU and directly on the Valley Metro Light Rail,” said Cheyne. “Nelson-Brothers plans to strengthen the student housing community by upgrading amenities and eventually developing and expanding onto the vacant one-acre lot that was included in the sale.”

“At a per-unit price of $104,280, the deal sets the high-water mark this year for sales of master-metered properties,” added Cheyne.

The Mark is situated near downtown Tempe and Tempe Town Lake. The top employers in the immediate area include Arizona State University, State Farm, Wells Fargo and United States Postal Service.

Vacancy in the Phoenix metro area was 5.6 percent at the end of the third quarter, 60 basis points less than last year. Average asking rents were $903 per month in September, a year-over-year increase of 6 percent.

© 2015 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 has arranged $14 million in financing for Latitude Queen Anne, a multifamily property located in Seattle.

Senior Managing Director Mitch Thurston and Senior Director Andy Ahlers of the San Francisco office secured the loan through Berkadia’s Fannie Mae program.

The full-term loan includes 10 years of interest-only debt service payments.

Latitude Queen Anne is 95 percent occupied and consists of 76 loft, one- and two-bedroom units. Community amenities include a rooftop with grilling and al fresco eating areas, resident lounge with a coffee and tea bar, fitness center and dog run with a pet station. Located at 500 Third Ave. W., the property is approximately two miles northwest of downtown Seattle.

“Seattle’s economy is strong, and the region’s multifamily market and lending activity is following suit,” Mitch Thurston said. “Berkadia’s strong West Coast presence allowed us to leverage our regional expertise to secure an attractive loan, which enabled the borrower to capitalize on favorable market trends.”

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 was among the top Freddie Mac and Fannie Mae multifamily lenders for 2013.

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.

© 2015 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 has secured $5.121 billion for a portfolio of 107 multifamily properties located across nine states.

Berkadia’s Managing Director Anthony Cinquini of the Los Angeles office worked with the borrower, Lone Star Real Estate Fund IV (Lone Star), to originate the seven-year loan through Berkadia’s Freddie Mac Program.

“This is the largest multifamily transaction Berkadia has executed with Freddie Mac to date, representing an outstanding team effort by everyone involved,” said Cinquini.
According to Berkadia, Lone Star used the mortgage financing to assist in its acquisition of Home Properties, Inc., which previously owned more than 36,500 total units in Florida, Illinois, Massachusetts, Maryland, Maine, New York, New Jersey, Pennsylvania and Virginia.

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 was among the top Freddie Mac and Fannie Mae multifamily lenders for 2013.

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.

© 2015 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)

One of the top multifamily investment sales teams in the Western U.S. has joined Berkadia. The additions include two Managing Directors, Ed Rosen and John Chu, who previously served as executive directors for Cushman & Wakefield.

Rosen and Chu will lead a team of three additional members in Berkadia’s newly expanded regional San Diego office. Combined their team has completed the sale of more than 80,000 units with a value in excess of more than $12 billion. Collectively the five–person team brings with them more than 70 years of multifamily sales experience.

The duo of Rosen and Chu are known as the dominant multifamily advisors in the San Diego marketplace, where they have been ranked as top producers for the past 20 years. Rosen and Chu specialize in the representation of large, institutional-sized deals and have completed sales in excess of $1.6 billion over the past 36 months.

“The addition of Ed and John demonstrates Berkadia’s continued commitment to bring the best advisors to its integrated mortgage banking, investment sales and servicing platform,” said Brent Long, President of Investment Sales at Berkadia. “We are thrilled to welcome them to our investment sales team in San Diego as we continue to grow our presence and service offerings in the Southern California commercial real estate market.”

Team member, Kyle Pinkalla, joins Berkadia as a Director and will concentrate on the larger institutional grade assets. He has been active in the multifamily sector for more than 10 years.

Erin Dammen, Vice President, will assist with marketing and client relations. She has been in the real estate industry for more than seven years.

Tyler Sinks, Associate Director, will assist the team on mid- to large-size private capital assets in the greater San Diego area.

About Berkadia

Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA. The company was among the top Freddie Mac and Fannie Mae multifamily lenders for 2013. Across the company’s 70 offices, multifamily investment sales and mortgage banking production exceeded $17 billion in 2014. Sales and finance volumes are on pace to surpass this number for the current calendar year.

Berkadia was founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation.

© 2015 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 has arranged $21.9 million in financing for One Sugar Creek Center, the Comerica Bank Building, in Houston, Texas.

The fixed-rate loan was secured by senior directors Corby Chaffin and Steve Comly of Berkadia’s Houston and Philadelphia offices, respectively, through a relationship with a life insurance company. The seller was represented by Jared Chua and Bernard Branca of CBRE’s Investment Properties – Institutional Group in Houston.

Berkadia originated the financing for Equus Investment Partnership IX LP, a discretionary fund managed by Equus Capital Partners Ltd.

The deal is the first in the Houston market for Equus, which is looking to buy additional buildings.

Built in 1983, the 193,988-square-foot, 11-story building sits on 4.5 acres at 1 Sugar Creek Center Boulevard. At the time of the closing, the property was 89 percent occupied.

About Berkadia

Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA. The company was among the top Freddie Mac and Fannie Mae multifamily lenders for 2013.

Berkadia was founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation.

© 2015 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)

Berkshire Hathaway’s joint venture Berkadia Commercial Mortgage is expanding its multifamily investment sales team with 12 new hires across the Midwest.

The new additions, all joining from Marcus & Millichap, include nine multifamily investment sales advisors and three supporting team members, who will be located in Berkadia’s Chicago, St. Louis and Kansas City, Missouri offices.

In the last 12 months, the team has closed 31 transactions totaling more than $300 million.

Eight of the new hires will join the Chicago office, expanding the existing office by nearly one-third of its original size, and bringing the total number of mortgage banking and investment sales professionals to 36.

The investment sales team joins the already established Berkadia mortgage banking team, making it a fully integrated regional office.

Senior Directors David Gaines and Alex Blagojevich, along with Director Michael Sullivan, are the leaders of the coordinated team.

In total, the group has brokered more than $1 billion in the sale of over 17,000 units across the Midwest.

Across Berkadia’s 70 offices, multifamily investment sales and mortgage banking production exceeded $17 billion in 2014.

Sales and finance volumes are on pace to surpass this number for the current calendar year.

About Berkadia

Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA. The company was among the top Freddie Mac and Fannie Mae multifamily lenders for 2013.

Berkadia was founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation.

© 2015 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.