Berkadia Arranges Sale of St. Louis Community
Higher yields are drawing investors to the area.
By Adriana Pop
St. Louis—Berkadia has completed both the brokerage and financing for Victorian Village Apartments, a 210-unit multifamily property in St. Louis.
Victorian Village Apartments in St. Louis
David Gaines and Alex Blagojevich, senior directors, Michael Sullivan, director, and Patrick Sullivan, associate director, facilitated the $11.3 million sale, alongside Aaron Abelson, managing director, who secured the $7.9 million loan through Freddie Mac on behalf of the buyer, AndMark Investment Fund II LLC. AndMark is operated by AndMark Management Co., a California LLC. The seller was Mills Properties.
The loan features a 10-year, fixed-rate term of 3.9 percent and a 30-year amortization schedule.
Victorian Village was built in 1984 and offers a mix of two- and three-bedroom floor plans that include washers/dryers, storage closets and bay windows. The community features a swimming pool, sauna room, cardio fitness center, clubhouse and business center.
Located at 11969 Continental Drive, the property is within close proximity to State Route 367 and major employers such as BJC Healthcare, Boeing Defense Space & Security, Washington University at St. Louis and Scott Air Force Base. Other nearby attractions include the Lambert-St. Louis International Airport, St. Louis Outlet Mall and NorthPark Business Park.
“Through Berkadia’s unified national investment sales platform, we were able to cultivate a pool of highly qualified bidders—the majority of which were not from the local market,” Gaines said in prepared remarks. “This sale truly exhibits a broader market trend with assets of this size.”
“As readily available financing and higher potential yields draw new investors to the market, buyer demand continues to outpace supply in the St. Louis area,” noted Patrick Sullivan. “Assets with more than 150 units have had the strongest appeal to investors who are drawn to the Class B/C assets at initial yields that generally start in the low-to-mid-7 percent.”
“We were able to obtain a very attractive Freddie Mac acquisition loan for the buyer – a strong existing client,” added Abelson. “The integrated mortgage banking and investment sales’ capabilities of the team allowed us to deliver competitive terms and close within 45 days of application.”
Image courtesy of Berkadia Real Estate Advisors
