Berkadia VP Jackson Cloak arranged a $57M loan for the acquisition of Retreat at Barton Creek. Jackson tells us the community is '80s vintage, which carries a stigma, but Retreat at Barton Creek has been well-maintained, and rents increased substantially as the deal was marketed and closing. That overcame lenders’ fears, and Jackson says the process was highly competitive (even Fannie and Freddie went after each other... but that's sibling rivalry for ya).
The borrower (a partnership led by Paydar Cos and Lankford & Associates) originally planned to get on-balance sheet bridge debt while it renovated and raised occupancy, but then the community rapidly leased up to 97% and ended up going right to a Fannie Mae loan. The 10-year money is fixed-rate and includes three years of I/O. Jackson says Retreat at Barton Creek is well-located and offers similar quality and amenities to nearby communities but is much more affordable. (Many of its neighbors top $2/SF.)
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