WASHINGTON, D.C. – December 23, 2020 – Berkadia today announced the financing secured for two properties, Coventry Townhomes and Brandywine Apartments. Members of Berkadia’s DC Metro office secured both loans on behalf of their respective borrowers.
Coventry Townhomes was financed using HUD’s 223(f) recent 3-Year Rule Change. Coventry was built in 2019 and features 55 Class A townhome-units with separate entrances, modern finishes and smart home features. Berkadia’s Managing Directors Laura Smith and Jonathan Pratt and Associate Director Maggie Burke secured the $13.4 million loan through HUD on behalf of the borrower, Utah-based Wright Development Group. The deal closed on December 4. The property, located at 2323 South 800 West, in Woods Cross, Utah, affords convenient access to downtown Salt Lake City, the University of Utah and Salt Lake City International Airport.
“With the recent HUD 3-Year Rule Change (Mortgagee Letter 2020-03) enabling recently new stabilized projects to qualify for 223(f) financing, we were able to pay-off the existing construction loan, provide the borrower with additional excess cash proceeds and return equity to the partnership at closing, even after funding a 9-Month Debt Service Reserve required by HUD to address COVID-19 concerns (Mortgagee Letter 2020-03),” said Smith.
“Our team is excited for an opportunity to grow our expertise in the Salt Lake City area. We execute on a national scale, but we are most excited about growth here,” added Burke. “Jonathan Pratt and I partner with Berkadia’s other platforms and capabilities across investment sales, capital markets, loan servicing and data technologies. As such, we are able to cover all of our client’s local and national needs, while also showcasing the value for our clients in this market.”
Brandywine Apartments is a 180-unit student housing community located in Amherst, Massachusetts. Berkadia’s Managing Director Laura Smith and Associate Director Rossana Bouchaya secured the $12 million refinancing through Fannie Mae on behalf of Connecticut-based Amshrew Associates. The deal closed on November 30. The loan includes a 30-year amortization, allows for seven years of interest-only payments and equity back to the borrower. The property consists of 60 one-bedroom units and 120 two-bedroom units, and the property affords convenient access to the University of Massachusetts.
“This is now the fourth time our team has refinanced Brandywine Apartments,” noted Smith. “Utilizing the FNMA program enabled the borrower to lock in a low interest rate during the peak of the COVID-19 pandemic, a particularly difficult time to finance student housing in the United States.”
“With COVID-19 restrictions, low interest rates and an unprecedented volume of agency loan requests, it was a bit of a roller coaster to get the financing completed. However, the end result is one that is very attractive to our client,” added Bouchaya.