Berkadia Closes Sale of 172-Unit Apartment Complex in Madison | REJournals
MADISON, Wis. – July 20, 2017 – Berkadia today announced the recent sale and financing for 306 West Luxury Apartments, a luxury multifamily property located in the heart of Wisconsin’s capital of Madison. Alex Blagojevich, Ralph DePasquale and Parker Stewart of the Chicago office completed the sale on behalf of the seller, 306 West Main, LLC. In addition to the sale, Berkadia’s John Oharenko, Michael Slovitt and Jeanne Peck secured financing for the buyer, 306 Apartments LLC, through a Berkadia insurance company correspondent. The deal closed on July 13.
The 10-year loan features a 3.51 percent interest rate, a 30 year amortization schedule and a 52 percent loan-to-value ratio.
“306 West is a high-quality asset in an exceptional location within one of the most dynamic markets in the Midwest,” noted DePasquale. “As the main hub for the University of Wisconsin system and the state capital, Madison sees high investor appetite and also very few non-student housing trades of quality assets with over 75 units. All of these factors contributed to a tremendous amount of buyer interest in the property, and our market research indicates it was reportedly one of highest per-unit prices paid for non-student apartments in Madison.”
“It was critical to the lock rate to close within the 30-day timeline, as it allowed the borrower to take advantage of a drop in the bond market by locking rate on a one-page term sheet the day they were awarded the deal,” said Peck. “Our team educated the lenders on Madison’s economic drivers and vibrancy, despite it not being a major market, resulting in a range of competitive quotes from institutional lenders for this acquisition.”
“It was a great experience working with the Chicago Berkadia team. They exceeded expectations on pricing and were able to close the transaction within a very short timeline,” said a representative from 306 Apartments LLC.
Built in 2015, 306 West Luxury Apartments features 172 units with one- and two-bedroom floor plans with stainless steel appliances, granite counter tops with a breakfast bar, balconies and patios, walk-in closets, custom cabinetry and in-unit washer and dryers. Community amenities include a 24-hour fitness center, a club room and a spacious private courtyard with a kitchenette, grill, fireplace and ample seating.
Located at 306 W. Main St., the property affords convenient access to Capital Square, Overture Center, Dane County Farmer’s Market, Madison B-cycle Station, State Street and Lake Monona, all within a three-block walking distance.