PHILADELPHIA, PA – March 14, 2019 – Berkadia announced today the closing of $688 million in acquisition financing for a 10-property, 4,130-unit multifamily portfolio in Pennsylvania and Virginia. Jim Badolato and Michael McKee of Berkadia’s Philadelphia office secured the financing with Fannie Mae on behalf of Philadelphia-based Morgan Properties.
The loan package is comprised of individual 10-year fixed rate first mortgages, featuring 7 years of interest only and sub-4% interest rates. The loans exceeded 77% of the total purchase price. Morgan Properties is budgeting a significant capital plan for these assets to upgrade unit interiors, amenities, and improve the overall experience for tenants.
“The capital commitment Morgan Properties is making to these communities is meaningful to us and is reflected in our terms. We’re proud to be part of the story,” said Badolato.
“We are pleased to partner with Berkadia in financing this portfolio and to turn the deal around so quickly,” said Rob Levin, Senior Vice President of Multifamily Customer Engagement, Fannie Mae. “The majority of the units in this portfolio support workforce housing, which is critically needed in communities across the country and is business that Fannie Mae is committed to winning.”
“This was a complex, time sensitive transaction. It’s exactly the type of financing where Berkadia excels, given our relationships and expertise with large projects,” added McKee.
The portfolio is comprised of 7 properties in Southeast Pennsylvania, including large multifamily properties in Devon and Bryn Mawr, which represent 947 units. The remaining 3 assets are located in Northern Virginia, including Mount Vernon Square with 1,387 units in Alexandria.
Other portfolio properties include:
• East Meadow (Fairfax, VA): 150 units
• Village at Potomac Falls (Sterling, VA): 247 units
• Sherry Lake (Conshohocken, PA): 298 units
• Waterview (West Chester, PA): 203 units
• The Preserve at Milltown (Downingtown, PA): 376 units
• Willowbrook (Norristown, PA): 248 units
• Hill Brook Place (Bensalem, PA): 274 units