Berkadia Commercial Mortgage LLC closed a portfolio of five multifamily properties in Milwaukee, Racine and Cudahy, Wis. through the HUD 223 (f) program, totaling nearly $23 million in refinancing. The fixed-interest rate loans – each under 4 percent – range from 80 percent to 85percent LTV and all feature a 35-year term and amortization.
The Gorman and Company portfolio includes five loft-style apartment complexes in the greater Milwaukee area. Senior Vice President Tom Sigrist, Senior Vice President Len Deering, CCIM, and Vice President Paul Matusiak worked with borrower Gary Gorman to secure financing for the buildings on a relatively short timeline based on the complexity of the transactions. On Jan. 12, Berkadia closed on the following multifamily properties:
In Central Milwaukee, the six-story Kilbourn Loft Apartment property is located in the former Milwaukee Hospital, originally constructed in 1863. The complete structure was periodically renovated between World War I and the 1970s, and most recently in 2005. The 99-unit brick and concrete building now features a community room, fitness center, theater room and indoor putting green. Located at 2200 W. Kilbourn Ave., the property is close to Milwaukee’s business district and provides residents with easy access to local retail shops and the nearby Marquette University.
Just a few minutes away, on 1620 S. 6th St., the Golden Domes property comprises of six two-story buildings on a 3.20-acre site. The 106-unit property was completely renovated in 2001-2002 using Section 42 low-income housing tax credits, and offers housing for residents determined to be at or below 30 percent to 60 percent of the area median income.
The Belle Harbor Apartments located in downtown Racine, Wis. were also recently renovated with the use of Section 42 tax credits. Originally built in 1884, the property was renovated in 2002 to include 78 loft-style apartments, a fitness center, theatre room and a basement garage.
The apartments are located near Lake Michigan and the Root River, along with numerous shops, marinas and parks. At 815 Eighth St. in Racine is the Mitchell Wagon property, a four-story factory building that was converted in 2004 into 100 loft-style apartments. The property includes a fitness center, theatre room, cyber lounge, and a basement area with numerous amenities for artists.
Finally, the Cudahy Apartments property located at 2770 Edgerton Ave. features a total of 142 apartments units, and a 4,500-square-foot clubhouse and leasing office. The 18 two-story buildings that make up the complex were originally built in 1961, but were completely renovated in 2003. The property is located near major routes leading to Milwaukee’s central business district, as well as the General Mitchell Airport.
“Berkadia has a long-standing relationship with the local Milwaukee HUD office and we have extensive experience working with them and other lenders on multifamily properties such as these,” Sigrist said. “Thanks to that previous experience and the outstanding efforts put forth by the closing attorneys, the HUD team, and the professionals at Gorman, we were able to secure these five loans in a very timely manner that worked for all the parties involved.”