RICHMOND, Va. – August 10, 2021 – Berkadia today announced the $77.1 million in combined financing secured for two multifamily properties, Big Sky Apartments in Virginia and Washington Landing in West Virginia. Senior Director Stephen Murden and Director Amy Gay of Berkadia Richmond, Virginia secured the respective HUD financing on behalf of Virginia-based Pinnacle Construction & Development Corp.
Big Sky Apartments is located at 107 Community Way in Staunton, Virginia. Berkadia secured the $32.72 million in permanent refinancing through a HUD 223(f) loan which features a 2.72 percent interest rate and an 80 percent loan-to-value ratio. The deal closed on July 19. The property features one-, two- and three-bedroom floor plans with in-unit washers and dryers, air conditioning and walk-in closets. Community amenities include a swimming pool, a fitness center, a clubhouse and a playground. Residents are afforded convenient access to Betsy Bell Wilderness Park, Interstate 81 and the shops and restaurants along Richmond Avenue.
“By combining both phases of Big Sky Apartments into one loan, we were able to maximize proceeds at an excellent interest rate and reduced MIP based on GREEN/Energy Efficient approval,” said Murden. “The final loan amount and cash-out proceeds exceeded the estimated mortgage at application through the COVID-19 pandemic impact to the regional, state and national economy.”
Washington Landing will be located in Charles Town, West Virginia, and the deal closed on June 30. Berkadia secured the $44.39 million in construction financing through a HUD 221(d)(4) loan which features a 2.92 percent interest rate and an 85 percent loan-to-cost ratio. The soon-to-be constructed property will feature 196-units with one-, two- and three-bedroom floor plans. Community amenities will include a fitness center, a swimming pool and a dog park.
“We submitted the HUD firm application for Washington Landing in early 2020, right before the world shut down,” said Gay. “The increase in construction costs nationwide, as well as the costs associated with keeping a construction site safe during COVID-19 changed the metrics of our deal considerably, but we helped our client navigate these changes to ultimately achieve a higher loan amount than originally anticipated. While the pandemic offered many unique lessons for me, I sincerely hope I never have another similar situation where they will be useful.”