Berkadia Negotiates $23.2M Multifamily Property Sale in Milford, Delaware
Milford, Delaware – April 30, 2025 – Berkadia, a distinguished leader in the commercial real estate sector, announced today the sale of The Reserve at Sawmill, a 149-unit, garden-style multifamily property in Milford, Delaware. Senior Managing Director Nat Gambuzza and Senior Director Trevor Fiebel of Berkadia Morristown, along with Senior Managing Directors Zac Pierce and Matthew Stefanski, and Associate Director Maura Spellman of Berkadia Philadelphia led the transaction on behalf of the seller.
“Due to the volatile capital markets leading up to the marketing launch, the opportunity was offered with the option of assuming the seller’s fixed rate debt. The purchaser was able to take advantage of the accretive in-place financing with a blended 4.99% rate between the senior and supplemental loans at 66% leverage,” said Fiebel.
The Reserve at Sawmill sold for $23.2 million at 5.71% cap rate on February 28. The sales price reflects a per-unit price of $155,705. The property was 100% occupied at the time of the sale. Formerly governed by a LIHTC restriction, the 100% market-rate property was delivered in phases ranging from 1984, 1995, and 2008.
“The sale of The Reserve of Sawmill comes off the heels of another sale consummated by the team in nearby known as The Villages at Stoney Brook,” said Gambuzza. “Although a separate transaction with different parties involved this further demonstrates the appeal of outside capital moving into new markets.”
“In both transactions, purchasers were drawn to the market based on the quality of the assets coupled with extremely low vacancy, inherently proving demand and rental upside,” says Peirce.
Located at 100-400 Valley Drive, the property is only 25 minutes from Delaware’s capital, Dover, and also a 25-minute drive from the famous Rehoboth Beach. It sits on 11.1 acres in a serene setting within walking distance to downtown Milford. Primarily consisting of 3-story, garden-style buildings, the property provides a diverse mix of floorplans ranging from one to three-bedroom apartments along with five townhomes. This well-rounded community will benefit the new buyer with future appreciation and rental upside.
Berkadia Brokers $23.2M Sale of Multifamily Property in Milford, Delaware | RE Business Online