PHILADELPHIA – September 5, 2017 – Berkadia today announced a $430.88 million loan package to support the acquisition and repositioning of a 2,644-unit multifamily portfolio at Mark Center in Alexandria, Virginia. Jim Badolato and Mike McKee of the Philadelphia office arranged the loans through Fannie Mae’s Delegated Underwriting and Servicing (DUS®) platform, completing the transaction on Morgan Properties’ behalf.
The portfolio includes multiple garden-style apartment properties within the Mark Center community, set back from the I-395 Interchange at Seminary Road in Alexandria. Steady performers but aging, the assets will receive needed capital under Morgan Properties’ renovation plans. Morgan is budgeting $35 million for improvements.
“Berkadia and Morgan Properties have a long-term relationship, and this financing is reflective of our trust in Morgan’s plan for these assets,” noted Badolato. “Their capital commitment, combined with the affordability and scale, made this a strike-zone lending opportunity for us.”
“We are thrilled with the execution by Berkadia and Fannie Mae, and we wanted to take advantage of this historically low interest rate environment,” said Jonathan Morgan, president of Morgan Properties.
The Fannie Mae fixed rate loans include varying prepayment flexibility as well as a future option for an additional supplemental loan. Under Fannie Mae’s Mod Rehab Supplemental product, when the borrower spends over $10,000 per unit in renovations within the near term, they may request an extra supplemental loan.
Since the beginning of 2016, Berkadia’s Philadelphia regional office has placed over $4 billion in financing.