Berkadia Secures $45M for New Orleans-Area Buy
- Sep 28, 2020
Berkadia has secured $34.2 million in debt and $11.2 million in equity for the acquisition of a two-asset portfolio totaling 579 units in the New Orleans metro area. One Real Estate Investment purchased the 199-unit Whitney Manor and 380-unit Westchase Apartments for a combined $45.7 million. According to Yardi Matrix data, the seller, a private investor, had acquired the Class B properties in 2017 for a total of $28.7 million.
Berkadia’s Mitch Sinberg and Brad Williamson arranged two Freddie Mac, fixed-rate loans through Freddie’s Green Advantage Program. The firm’s Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick with the Joint Venture Equity and Structured Capital Group sourced the equity partner.
Berkadia originated a $23.3 million loan with four years of interest-only payments for the $31.1 million purchase of Westchase Apartments. The Whitney Manor acquisition of $14.6 million was financed with a $10.9 million note with a three-year interest-only period.
The financing marks the third time this year that Berkadia arranged debt and equity for OREI’s operations in the Southeast and Texas. In August, the same team provided the firm with $32.4 million for the refinancing of a 300-unit property in Norcross, Ga.
The Louisiana portfolio
Situated on almost 6 acres at 1117 Whitney Ave. in Gretna, Whitney Manor consists of 19 two-story buildings completed in 1975. The unit mix features one- to three-bedroom units ranging from 700 to 1,200 square feet. The property has 200 parking spaces.
Westchase Apartments consists of 28 buildings on 11 acres at 1013 Manhattan Blvd. in Harvey. The 1975-built garden-style community has one- and two-bedroom floorplans ranging from 858 to 1,192 square feet. Amenities include a two-story community room, two swimming pools, a fitness center and a business center.
Both properties are approximately 3 miles apart in Jefferson Parish, some 6 miles south of downtown New Orleans. Loyola University, Tulane University and Louisiana State University are all within a 10-mile radius.