Berkadia Secures $107M for 7 M-F Properties in Las Vegas

A portfolio of seven multi-family properties in Las Vegas owned by Interwest Capital and Angelo, Gordon & Co. received $107 million in financing arranged by Berkadia Commercial Mortgage.

Jackson Cloak, Berkadia

A portfolio of seven multi-family properties in Las Vegas owned by Interwest Capital Corp. and Angelo, Gordon & Co. received about $106.9 million in financing arranged by Berkadia Commercial Mortgage L.L.C.

The properties consist of 2,149 age-restricted units and are all about 90 percent occupied.

Vice President Jackson Cloak, located in Berkadia’s Orange County, Calif., office, secured the floating-rate financing through Berkadia’s Freddie Mac and Proprietary Bridge Lending Programs. BBVA Compass, a Houston-based financial institution, was also part of the financing deal.  The Freddie Mac loan was for $54.9 million and Berkadia and BBVA provided the remaining financing.

“This robust transaction required us to leverage our expertise across multiple capital sources,” Cloak said in a news release. “By calling upon our rich experience working with GSEs, banks and our own lending platform, we were able to provide the borrowers with unique and flexible loan structures not generally offered in the overall market to help them execute their business plans.”

The assets in the financing include Destinations at Valley View, Destinations at Spring Valley and Destinations at Pebble, which were among four properties acquired in December 2013, by the investors for $75 million. Interwest, a La Jolla, Calif., private equity firm specializing in multi-family and hospitality assets, and Angelo, Gordon & Co., a New York-based, privately-held investment advisor, acquired four more Destinations-branded properties in January, bringing the total investment in the Las Vegas communities to $150 million, according to the San Diego Business Journal.

Interwest stated in a December press release that it intended to continue to operate the properties as age-restricted communities while they underwent capital improvements “to keep the properties fresh and competitive.”

A Second Half 2014 SeniorsHousing Research Report by Marcus & Millichap noted the strong economy and improving housing market are “paying dividends for all sectors of seniors housing.” Baby boomers and retirees are able to unlock the equity that had been trapped in their homes during the recession and the soft housing market. They are now able to deploy those funds toward seniors housing options.

The report added that “a strong economy will facilitate further gains in occupancy and rents” for the second half of the year.

Interwest announced in August that it had hired Ryan Gilbert as its new vice president of acquisitions. Gilbert’s responsibilities include sourcing new acquisitions and joint venture equity relationships, including value-added and opportunistic investments in multi-family, seniors housing and hotels that range from $20 million to $75 million.

Berkadia, a jointly-owned venture of Berkshire Hathaway and Leucadia National Corp. recently arranged $156.6 million in financing for a portfolio of 15 seniors housing properties owned in seven states by Capital Living Senior Corp.