CHICAGO and KANSAS CITY, Mo. – June 26, 2020 – Berkadia today announced the sales of The Landing of Clinton and Indian Springs, two multifamily properties totaling 758 units. Berkadia’s Mid Markets Group, including Senior Managing Director Alex Blagojevich, Managing Directors Michael Sullivan and Ralph DePasquale, Senior Director Chris Bruzas, as well as Director Parker Stewart, together completed the two sales on behalf of their respective sellers.
“In the case of The Landing of Clinton, the buyer assumed an interest-only Freddie Mac loan and benefitted from six remaining years of a tax abatement. This combination created an attractive opportunity for the buyer to generate an above-market return on investment,” said Blagojevich. “In the case of Indian Springs, our capital markets team was able to secure low cost Freddie Mac debt for the buyer, ultimately creating an opportunity for the buyer to generate a very strong yield. These closings occurred because of the solid management of both of our selling clients during the unique timeframe of a global pandemic and are a testament to the demand for well located, well performing assets across the Central United States. Buyers continue to be attracted to the region for its consistency, particularly during a time of greater volatility in coastal markets.”
The Landing of Clinton’s seller was Iowa-based Beaver Builders Inc. The buyer was Haverkamp Properties, Inc., also based in Iowa. The property is located at 2582 Friendship Trail in Clinton, Iowa, and includes 190 units of one-, two- and three-bedroom floor plans with vaulted ceilings, granite countertops, air conditioning and in-unit washers and dryers. Community amenities include a swimming pool with private cabanas, a clubhouse, a playground, an outdoor area with grilling stations and a dog park. Residents are afforded convenient access to the shops and restaurants along Lincoln Highway. The deal closed on June 1.
“The project stabilized in July 2019 and our banking team was able to execute on a 12-year Freddie Mac takeout in August,” said Stewart. “When we took the property to market, the debt assumption helped give the market certainty of favorable loan terms, which was a critical piece to the overall sale price.”
Indian Springs’ seller was a private operator based in Connecticut. Senior Managing Director Peter Benedetto of Berkadia’s Detroit office secured $28.48 million in financing for the acquisition of the property on behalf of the buyer, Colorado-based Monarch Investment and Management Group.
Indian Springs is located at 2609 Bow Court in South Bend, Indiana. The property features 568 units of one-, two- and three-bedroom floor plans with large closets and central air conditioning. Community amenities include a fitness center, a swimming pool and a playground. Residents are afforded convenient access to Interstate 80, the University of Notre Dame and the shops and restaurants along Portage Avenue. The deal closed on June 10.