Berkadia Secures $54 Million in Financing for Multifamily Property in Virginia

February 2, 2021

Berkadia Secures $54 Million in Financing for Multifamily Property in Virginia

February 2, 2021
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RICHMOND, Va. – February 2, 2021 – Berkadia today announced the $54.075 million in financing secured for Scott’s View, a multifamily mixed-use property in Richmond, Virginia. Senior Managing Director John Reed of Berkadia’s Richmond, Virginia office secured the permanent refinancing for the property on behalf of Virginia-based Historic Housing, LLC and its principals David White and Louis Salomonsky. The deal closed on January 20.

The 15-year Fannie Mae loan features seven years interest-only followed by a 30-year amortization, a 75 percent loan-to-value ratio and a 3.33 percent interest rate.

“This two-tower, mixed-use trophy asset is prominently located at the downtown expressway ramp into Scott’s Addition and contains 345 apartment units plus retail and other commercial space,” said Reed. “Despite the challenges during the pandemic, the property leased up very quickly with increasing rents and no concessions. Our ability to work with Fannie Mae to recognize and underwrite the income from the commercial tenants was material to the transaction. Scott’s Addition remains the hottest submarket in Richmond, and the sponsors are well positioned with this property and others to benefit from the continued submarket strength.”

“Our property management company, Main St. Realty, has overseen the lease-up of nearly two dozen Historic Housing communities, but Scott’s View has offered the smoothest leasing process and the strongest market demand of any of them. The property was fully leased prior to completion. The property’s location, amenities and beautiful finishes have combined to position this property as the most sought-after new local housing community, and one with the highest occupancy and rents of any property in our Richmond portfolio,” said Brian White, President, Main St. Realty.

Scott’s View, located at 3410 W Clay St., features one- and two-bedroom floor plans with in-unit washers and dryers. Community amenities include a fitness center, a swimming pool, a laundry facility, garage parking and an outdoor area with grilling stations. The buildings are well designed and insulated to meet good environmental standards and high operational efficiency.  The base rents are all-inclusive of utilities, high-speed internet, DISH and parking.  Residents are afforded convenient access to the many restaurants, breweries and entertainment venues nearby.