DALLAS, Texas. – November 4, 2011 – Berkadia Commercial Mortgage (Berkadia) recently originated $36,557,700 in fixed-rate refinancing through its HUD/FHA program for the Verona Apartments, a luxury 16-story high-rise apartment building in Dallas, Texas. The loan features a 28-year term with a 28-year amortization and an 84% LTV. Berkadia Senior Vice Presidents John Koeijmans and Steve Mentesana originated and underwrote the transaction, which closed on Oct.13, 2011.
Berkadia’s expertise in the multifamily and Dallas markets equipped us to close the best refinancing to fit our needs,” said Tom Huth, president and CEO of Palladium (USA) International, Inc., the sponsor for the borrower Villa Verona, Ltd. “The property’s appeal as a luxury high-rise residence and our long-term hold strategy was a perfect match for this program.”
The Verona Apartments are the first U.S. multifamily property inspired by artist Paris’ Kiron Galerie d’Art, and features one bedroom, two bedroom, three bedroom and penthouse units with luxury amenities, including concierge service and access to a billiards room, cigar room, theater, aqua lounge and a three-story underground parking garage. Located in North Dallas across the street from the Galleria, a regional shopping destination and employment hub, the property has a total of 273 units and is currently 92 percent occupied.
In order to remain competitive with high-end, high-rise projects and new mid-rise projects in the area, the owners elected to upgrade the common areas and leasing offices. They will also upgrade the resident unit interiors, which will include stainless appliances, granite countertops, and wood flooring. The estimated cost for these upgrades is more than $5 million.
“HUD’s approval to allow our borrower 24 months to complete renovations to the property, rather than the typical 12 months, showed HUD’s flexibility and was a major factor in completing this transaction,” said Steve Mentesana. “This loan helped our client stay competitive in the Dallas market.”
About Berkadia™:
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 $193 billion as of June 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. The company also offers investment sales services nationwide.
To learn more about Berkadia, please visit www.berkadia.com.