WASHINGTON D.C. – July 1, 2019 – Berkadia today announced $21 million in financing for a garden-style multifamily property in the Midwestern U.S. owned by Sundance Bay Multifamily. Director Jonathan Pratt and Associate Director Rossana Bouchaya of Berkadia’s Washington D.C. office secured the loan on behalf of Utah-based Sundance Bay Multifamily. The deal closed on June 28.
The ARM 7/6 Near-Stabilization Fannie Mae loan features a variable interest rate, a 100 percent loan-to-cost ratio and two years of interest-only.
“Sundance Bay has recently completed an extensive unit renovation at the property, and as a symptom of the business plan, the property is currently 76 percent occupied. Berkadia and Fannie Mae were able to structure an ARM 7/6 near-stabilization loan for the client to pay off the maturing bridge loan,” said Pratt. “I am thrilled that we were able to come up with the best possible debt structure to match Sundance Bay’s business plan. Especially, using a debt product like the ARM 7/6 with an embedded cap to lower the partnership’s costs and flexible prepayment.”
Sundance Bay was founded in 2012 with an investment in two small multifamily assets. Since then, Sundance Bay has expanded its multifamily portfolio to acquire over 4,500 units across the country and launched Debt Strategies and Net Lease Investment verticals.
The property features one-, two- and three-bedroom floor plans with walk-in closets, dishwashers, granite countertops, in-unit laundry and private patios or balconies. Community amenities include a fitness center, a hot tub, a clubhouse, a playground, a pool and a barbecue area.