Norfolk, Va. (March 23, 2021) – Berkadia announces it has arranged the sale and financing of a three-property, 452-unit portfolio of affordable multifamily properties located in the suburbs of Richmond and Norfolk, Virginia. The three properties – Oaks of Dunlop Farms in Colonial Heights (144 units), Independence Square (152 units) and Crescent Place (156 units), both in Portsmouth – traded for a combined $48 million.
Senior Managing Director Drew White of Berkadia’s Chevy Chase, MD office and Director Carter Wood of Berkadia’s Newport News, VA office represented the seller, The Franklin Johnston Group. Senior Managing Director Mitch Sinberg and Associate Director Matthew Robbins of Berkadia’s Boca Raton office arranged a $39.105 million loan on behalf of the buyer, a joint venture between Blackfin Real Estate Partners, LLC and GMF Capital. Managing Directors Ted Hermes and Jonathan Pratt were also involved in the transaction. Berkadia originated and Freddie Mac will purchase the 10-year, Targeted Affordable Housing (TAH) floating rate loan.
“We had investor interest from all over the country for these three properties, as it’s a rare opportunity to see a portfolio averaging 98%+ occupancy and 4%+ rent growth,” said White. “This was a testament both to the management team, as well the market. Great execution all around.”
“Leveraging Freddie Mac’s affordable housing product to carry out a unique investment thesis among three properties, the buyer’s portfolio will benefit from tailwinds in each market that have resulted in stabilized properties,” added Sinberg.
Built in 1990, The Oaks of Dunlop Farms is located at 101 Old Oak Ln. One-, two- and three-bedroom units include high speed internet access, washer/dryer and a fireplace. The pet-friendly community features a clubhouse, swimming pool and playground.
Built in 1986, Independence Square is located at 5120 George Washington Hwy. One-, two- and three-bedroom units include walk-in closets, washer/dryer and a private patio/balcony. The pet-friendly community features a swimming pool and playground.
Built in 2008, Crescent Place is located at 2804 Turnpike Rd. One-, two- and three-bedroom units include walk-in closets, office space and washer/dryer. The pet-friendly community features a clubhouse, swimming pool and a fitness center.