The New York office of Berkadia Commercial Mortgage LLC (Berkadia) recently closed two deals totaling $21.1 million in financing for multifamily properties located in New York and near Houston, Texas.
Senior Vice President Stewart Campbell and Vice President Thomas Toland worked with borrower South 1st Realty Corporation to provide $14.5 million in financing through Berkadia’s bridge loan program for a Williamsburg property. The 12-month, floating-rate loan will be used to stabilize the newly constructed apartment building, located at 88 South 1st Street. The 31,000 square foot property is comprised of 31 units and is expected to stabilize in the next six months.
“Williamsburg continues to be one of the strongest apartment markets in the country. In the last 18 months, Berkadia has closed 11 fixed-rate and bridge loan deals in the area, totaling more than $230 million in total proceeds,” said Campbell. “We are one of the few organizations in the area that can offer borrowers the flexibility of both types of lending, offering financing and stabilization options.”
Toland and Campbell also worked together with borrower Riverwalk SG LLC to close on refinancing for the Riverwalk Apartments located in Conroe, Texas. Through lender Freddie Mac the Berkadia team was able to arrange for $6.6 million in refinancing for the Class B property. The 10-year, fixed-rate loan helped to significantly lower the borrower’s interest rate and will also provide funds for improving the property. Planned improvements to the seven-acre property include exterior renovations, landscaping and unit upgrades.
“As an older property in a secondary market, Riverwalk was seen by some as a challenge, but we saw a great opportunity to refinance. The property is well-run and in good condition, and sits within the strong market of Houston-area communities,” said Toland. “We were able to use our extensive experience as one of the top Freddie Mac lenders to find a solution that that not only cut the borrower’s interest rate, but delivered the necessary proceeds.”