Berkadia Completes Largest Multifamily Transaction in History of St. Louis

March 27, 2018

Berkadia Completes Largest Multifamily Transaction in History of St. Louis

March 27, 2018

Berkadia Closes on Largest Multifamily Deal in St. Louis History | St. Louis Business Journal 

Record $180M MF Deal Completed in St. Louis | Connect Commercial Real Estate 

Berkadia Closes Largest Multifamily Deal in St. Louis History | REJournals 

Monarch Investment Acquires Six-Property Multifamily Portfolion in St. Louis for $180M | REBusiness Online 

GEM Property Management Exits St. Louis in $180M Sale | Multi-Housing News 

ST. LOUIS – March 27, 2018 – Berkadia today announced the sale and financing of a six-property portfolio located in St. Louis County, Missouri. The 2,000-unit portfolio sold for nearly $180 million, marking the largest multifamily deal in the history of St. Louis. Berkadia’s Senior Director Andrea Kendrick and Managing Director Ken Aston completed the sale on behalf of the seller, New Jersey-based GEM Property Management. Senior Managing Director Peter Benedetto arranged the financing on behalf of the buyer, Monarch Investment and Management Group, based in Colorado.

“The portfolio included six outstanding apartment communities with long-term ownership,” said Kendrick. “In recent years, the seller invested more than $50 million into capital improvements. This deal was an excellent opportunity for the buyer to acquire 2,000 units in the premier south St. Louis County sub-market, providing them with even greater economies of scale.”

“This transaction is indicative of the strength of both the St. Louis multifamily market and Berkadia’s marketing platform,” said Aston. “It is the largest portfolio transaction in the history of St. Louis real estate.”

The Midwest Metropolitan multifamily portfolio includes:

  • Canyon Creek – St. Louis, Missouri (320 units)
  • Forest Woods – Valley Park, Missouri (260 units)
  • Southwoods – St. Louis, Missouri (256 units)
  • Heritage Estates – St. Louis, Missouri (388 units)
  • Villages at General Grant – St. Louis, Missouri (550 units)
  • Village Royale – St. Louis, Missouri (196 units)

“It’s always a pleasure to work with Monarch and Fannie Mae,” said Benedetto. “This portfolio was highly sought-after, and we needed to ensure a smooth transaction for all. We especially appreciate that Fannie spent time walking the property with Monarch before they were awarded to guarantee confidence for all in deliverability of terms and timing on the six loans. All parties involved in the deal engaged in what I call ‘the recipe for success’—a sense of urgency, ownership of responsibilities and great communication throughout the process.”

“We have enjoyed these last twenty years acquiring, renovating and helping improve the quality of life in our residential communities, while at the same time providing an excellent return for our ownership group,” said Earl Swink, President, GEM Property Management. “After over 30 years in the multifamily business, we felt it was time for us to step back. We were fortunate to have Andrea and Ken lead the sales process, bringing us Monarch as the new owner and management group. We are very appreciative to all of our GEM team members and pleased that most of them will be staying in their current positions with the new management company.”

Joe Harms and Legal Assistant Julie Irvin of Salivar & Harms LLP acted as legal counsel for all sellers.

Each of the assets are garden-style, multifamily properties with extensive amenity packages, AAA-rated school districts and located near major area employment centers with a historical average occupancy exceeding 96 percent.