DiCrocco of Berkadia Commercial originates $88.458 million fixed-rate loan

Berkadia Commercial Mortgage originated $88.458 million in fixed-rate financing through its Freddie Mac program for the refinance and recapitalization of a Parkhill Apartments, a project-based Section 8 apartment complex. The 10-year loan has a 30-year amortization schedule. The flexible financing structure permitted a subordinate HUD second mortgage and included earn-out provisions. Situated on 21 acres at 140-280 Parkhill Ave., the 1.1 million s/f complex consists of eight, six-story buildings with a total of 1121 units. The property was 98% occupied at the time of closing. Average rents are $1,200 a month. Senior vice president John DiCrocco of Berkadia's New York City office originated the loan. The borrowers, Poonam Apartments LLC, Kimso Apartments LLC and 185-225 Park Hill LLC, are affiliates of Delshah Capital. "This transaction was complicated by a heavily negotiated second mortgage subordination and changes to the properties' HUD regulatory agreements," said DiCrocco. "Berkadia's team worked closely with all parties to help manage the process and meet the expectations of the borrower, Freddie Mac and HUD." Berkadia Commercial Mortgage LLC, a privately held company in which Berkshire Hathaway Inc. has a 50 percent ownership interest, is a highly rated special, master and primary servicer managing a portfolio of more than $236 billion as of Dec. 31, 2009. As a correspondent for insurance companies and a leading approved lender for Fannie Mae, Freddie Mac and HUD/FHA, Berkadia offers clients access to capital sources for the acquisition, construction, rehabilitation or refinance of commercial real estate properties.