Berkadia Commercial Mortgage originated $13,000,000 in floating-rate debt for the acquisition of a student housing property located at the University of Illinois. The loan features a three-year term to allow for the repositioning of the property. The borrower is a joint venture between the Preiss Company of Raleigh, North Carolina and the Collier Companies of Gainesville, Florida. The Preiss Company, one of the largest owners and managers of student housing properties in the United States, will manage the property.
The loan marks the first interim bridge transaction completed under Berkadia’s expanded proprietary lending program, which launched in March. Berkadia now offers short-term bridge financing (6-12 months) and interim bridge loans (2-3 years) to borrowers in all core commercial property types seeking to acquire and reposition properties through non-recourse commercial mortgages.
“This deal is an example of a transaction where Berkadia can provide takeout financing through our longstanding GSE relationships and our new conduit business announced earlier this year,” said Managing Director Hugh Hall, in a released statement. “Under the stewardship of Preiss, we believe the property operations should stabilize and allow for refinancing through one of our multifamily lending programs.”
Located on North Moreland Boulevard in Champaign, Ill., the property was developed in 2007 with construction financing from Wachovia Bank. The Class-A garden style complex includes 240 units with 792 beds.
