March – Briefs/Finance

Berkadia Closes $1.5B M-F Loan Portfolio; Prudential Provides $85M for Manhattan Retail; Cohen Financial Secures $119M for Veer Tower; Boston Capital Closes $150M Affordable Housing Fund; JLL Secures $215.6M to Refi 1,359-Key Hotel Portfolio; Cassidy Turley Secures $85M for Virginia M-F Development; George Smith Partners Closes $185M for Retail Portfolio; RXR Realty, HFF Land $95M for NJ Office.

Berkadia Closes $1.5B M-F Loan Portfolio

Berkadia Commercial Mortgage L.L.C. has closed a $1.5 billion loan portfolio through Freddie Mac for Southern Management Corp., the largest privately owned residential property management company in the Mid-Atlantic region. The portfolio comprises loans ranging from $2.5 million to $135 million on 69 multi-family assets. Individual loans were closed in stages in December and January.

The underlying properties represent the vast majority of Southern Management Corp.’s assets, which total 74 apartment communities and more than 25,000 units. The deal represents the largest loan funding in Berkadia’s history and reportedly is also expected to be Freddie Mac’s largest multi-family deal eligible for securitization through its CME program to date.

Prudential Provides $85M for Manhattan Retail

Prudential Mortgage Capital Co. has provided an $85 million, 15-year fixed-rate loan to MD Carlisle and JD Carlisle for Kips Bay Plaza, a 171,325-square-foot grocery-anchored retail center in the Kips Bay section of eastern Manhattan. The property was originally developed by the borrower in 1998. Located on Second Avenue between 30th and 32nd streets, the property is currently occupied by Fairway Supermarkets, an AMC movie theater, a Rite Aid pharmacy, Petco, Staples and TD Bank.

Cohen Financial Secures $119M for Veer Tower

Cohen Financial has secured debt and equity financing for 427 condo units in CityCenter’s Veer Towers in Las Vegas. CityCenter is a joint venture between MGM Resorts international and a subsidiary of Dubai World, a UAE holding company. The towers were built as for-sale condos, but the asset has been near full occupancy as luxury rentals since it opened in 2010. Units are now being marketed entirely on a for-sale basis. Amenities include an infinity pool, sun deck and hospitality patio.

Boston Capital Closes $150M Affordable Housing Fund

One year after its launch, Boston Capital’s $150 million Boston Capital Tax Credit Fund XXXVI has closed, with a portfolio of 22 affordable housing properties accounting for an aggregate 2,471 residential units. The group of residential developments encompasses nine seniors housing properties and 13 traditional affordable housing communities. With the closing of the fund, Boston Capital has raised $601 million in equity since January 2012.

JLL Secures $215.6M to Refi 1,359-Key Hotel Portfolio

Jones Lang LaSalle Hotels has secured $215.6 million in non-recourse senior mortgage proceeds that refinance a three-property portfolio of hotels owned by a partnership between Ashford Hospitality Trust and Prudential Real Estate Investors. Assets in the portfolio include the 390-room Hilton Boston Back Bay, the 296-room Westin Princeton at Forrestal Village in New Jersey and the 673-room Renaissance Nashville in Tennessee. The Hilton Boston Back Bay was financed as a standalone asset with a $103 million loan, while the Westin Princeton and the Renaissance Nashville were financed jointly with a $112.6 million loan.

Cassidy Turley Secures $85M for Virginia M-F Development

Cassidy Turley has landed an $85 million construction loan for Parc Reston, a to-be-built multi-family project comprising two 14-story high-rise buildings in Reston, Va. A consortium of institutions led by Capital One Bank provided the financing. Renaissance Centro Reston L.L.C. was the borrower. The project recently broke ground and is located across from Reston Town Center, close to the future Silver Line Metro station. When complete, the community will feature 360 units, two swimming pools (indoor and rooftop), a fitness center, an Internet lounge, a business center, a media room, virtual golf and an on-site concierge.

George Smith Partners Closes $185M for Retail Portfolio

George Smith Partners has arranged and closed $185 million in financing on behalf of DJM Capital Partners Inc. The deal recapitalizes a retail portfolio consisting of four Class A shopping centers in Southern California. The four retail property loans within the portfolio included La Habra Marketplace for $70.6 million, Village Del Amo for $40.2 million, Montalvo Square for $42.2 million and Lakewood Square for a $32 million loan. The portfolio loan allowed DJM to lock in long-term fixed-rate financing on the four core retail assets. Proceeds will be used to pay off existing senior and mezzanine loans, scheduled to come due in the next 12 to 18 months.

RXR Realty, HFF Land $95M for NJ Office

With the help of Holliday Fenoglio Fowler L.P., RXR Realty has landed funds for the refinancing of a four-building group of office properties in West Windsor, N.J. The real estate investment operator and investment manager secured $95 million for the approximately 465,600-square-foot portfolio, located in close proximity to Princeton University. HFF placed floating-rate loans totaling $85 million with Bank of America for the Class A portfolio. RXR also obtained a second loan totaling $15 million.