TODAY’S DEALS: Berkadia Originates $23.7M for Wash. Property

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Berkadia Commercial Mortgage originates $23.7M for Wash. property; AREA Property Partners invests $100M in the recapitalization of Maryland apartments; and Dizengoff-Trading Company purchases 65 condo units in Palm Beach.

Madison Sammamish

Sammamish, Wash.–Berkadia Commercial Mortgage originated $23,725,000 through its Freddie Mac program for the acquisition of Madison Sammamish, a multifamily property in Sammamish, Wash.

Madison Sammamish is a 266-unit garden-style multifamily community originally developed in 1988. The property has undergone significant renovations in recent years.

The loan was originated by the Berkadia San Francisco office. The borrower was a newly formed joint venture between Pacific Property Company and Trecap Partners.

AREA invests $100M in ROSS apartment recapitalization

College Park, Md.–AREA Property Partners invested $100 million in the recapitalization of Seven Springs Village Apartments, now a ROSS Development & Investment (RDI) community.

ROSS negotiated a modification and extension of the community’s existing, fully-performing securitized mortgage debt that was set to mature on September 1, 2010.

For over a year, RDI’s founder and principal, Scott Ross, navigated a solution to gain control of the property by acquiring the interest of a partner and then partnered with AREA Property Partners to pay off the existing loan with a new Freddie Mac recapitalization.

Part of the recapitalization plan is to renovate the apartments and enhance the common areas of Seven Springs Village. The ROSS Companies are also considering additional development opportunities at the community.

“This property is in an ideal location,” says Ross. “We are committed to maximizing the value of the asset in every way possible.”

Located inside the Beltway in College Park, Md., Seven Springs Village is a 982-unit apartment community comprised of both mid-rise and garden style buildings. Metrobus and shuttle bus stops provide access to two Metrorail stations and the University of Maryland.

Dizengoff-Trading Company buys 65 Palm Beach condo units

Palm Beach, Fla.–Dizengoff-Trading Company purchased the remaining 65 units at 2560 South Ocean, a 94-unit mid-rise condominium project, also known as the “Whitehouse”. The real estate investment company paid $6.9 million for the units, which averages approximately $96 per square foot. The same units were selling on average for $385 per square foot in 2006. There were already leases on 90 percent of the residences and Dizengoff plans on leasing the remainder. The units were purchased from a South Florida bank.

Originally constructed in 1975 as a rental property, 2560 South Ocean was converted to a condominium in 2006 following major renovations. All of the units have private balconies that offer views of both the Intracoastal Waterway and the Atlantic Ocean. Residents have deeded access to the beach.

The properties feature studio, one-, two-, and three-bedroom floor plans with penthouses on the seventh floor. The units average 1,104 square feet in size. This was Dizengoff’s fourth bulk purchase in South Florida within the past year and a half.

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