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Make Some Room For Bridges

Houston
Make Some Room For Bridges

While GSEs are still the bulk of financing activity--like the $57M loan portfolio that Berkadia recently closed forConcierge Asset Managementthrough Freddie--bridge lendingis picking up again.

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Over the last 12 months, Berkadia SVP/Austin branch managerBrant Smith hasseen a rush of new participants while size constraints diminish. Bridge loans used to be a minimum $15M, but now hes seeing as low as $5M and higher leverage. And structuring is back to pre-crash levels, but dont be alarmedhe says structure was never the problem. (It only matters in grammar and Jenga.)

 

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Now back to that GSE deal, which refinanced four multifamily properties in Houston and San Antonio.It includes $21M for Aberdeen Apartments (pictured), which grabbed a seven-year floating-rate loan at 3.12% interest, which also describes our attention to the Kardashians. That property features 656 units and is 92% occupied. The other local property is El Dorado Ranch Apartments in Webster, which received a $10M refi with a 10-year fixed-rate loan at 75% LTV. Its 324 units and 91% occupied.