Campbell and Toland of Berkadia structures $49.95 million interim construction financing for multifamily project in Williamsburg

Berkadia Commercial Mortgage LLC recently closed $49.95 million in financing for a new multi- family project in Williamsburg at 205 N. Ninth St. Senior vice president Stewart Campbell and vice president Thomas Toland originally structured interim construction financing for the property through Berkadia's bridge lending program in November 2011; the funds were used to refinance the construction loan and to provide funds to complete and lease the project. Upon the project's completion, the Berkadia team provided the borrower, North Driggs Holdings LLC, with a permanent 10-year Fannie Mae loan at a 3.62% interest rate. Berkadia and Fannie Mae were able to close the market leading loan despite structuring challenges, including: phased development issues, a lack of a permanent certificate of occupancy at closing, preliminary certificate of eligibility for 421(a) tax exemption, and issues relating to cross-easements for ingress/egress and parking. The 112,000 s/f, 113-unit multifamily property has been fully occupied since March. Building amenities include a screening room, lounge, gym and a rooftop deck. "As one of the few lenders in the market with a flexible bridge-to-permanent loan program, we were able to give the borrower a one-source lending option to both complete and stabilize and permanently finance the property," said Campbell. "With multiple phases, real estate tax exemption issues and new construction, our bridge-to-permanent loan program was a perfect fit for this particular deal," said Toland. "It gave our borrower the flexibility they needed to complete construction and lease the project." Berkadia Commercial Mortgage LLC is one of the most prominent lenders in the commercial real estate industry and a highly rated special, master and primary servicer managing a portfolio of more than $190 billion as of December 2011. As a correspondent for insurance companies and other institutional lenders and a leading approved lender for Fannie Mae, Freddie Mac and HUD/FHA, Berkadia offers clients access to capital for the acquisition, construction, rehabilitation or refinance of commercial real estate properties.