Berkadia Secures $25M Loan for TX Community

Berkadia arranged the acquisition loan on behalf of Faudree Ranch Apartments LLC. The 300-unit community in Odessa, Texas, was 90 percent occupied at the time of the transaction.

Berkadia has secured a $25.1 million acquisition loan for Faudree Ranch Apartments, a 300-unit community located in Odessa, Texas. JP Morgan originated the five-year, fixed-rate loan, that carries two years of interest and a 67 percent loan-to-value ratio. According to Yardi Matrix data, the seller was Ascension Commercial Real Estate.

Senior Managing Director Charles Foschini and Managing Director Christopher Apone from Berkadia’s South Florida office arranged the loan on behalf of the borrower, Faudree Ranch Apartments LLC. At the time of the sale, the property was 90 percent occupied.

The 15-acre Faudree Ranch Apartments was built in 2014, consisting of 12 three-story buildings at 2741 Faudree Road, near W Highway 80 East. Also in close proximity are Odessa Country Club, Odessa-Schlemeyer Field airport, Ratliff Stadium and the University of Texas at the Permian Basin.

The unit mix consists of one- to three-bedroom floor plans, with rents ranging from $1,220 to $2,200 per month. Apartment amenities include built-in computer desks, six-panel interior doors and nine-foot ceilings. Common area amenities include a bocce court, business center, fitness center, volleyball court, swimming pool and covered parking.

“The borrower is a long-time client with 1031 capital making a well-timed acquisition in the heart of America’s energy corridor,” Foschini said in a prepared statement. “Though the purchase was well below replacement cost and at a very high cap rate, there were not many lenders who shared the same opportunistic vision. We were successful in generating a competitive market for the loan and found a CMBS lender who performed flawlessly and delivered the loan exactly according to our application terms.”

Images courtesy of Yardi Matrix & Faudree Ranch Apartments