During the last eight weeks, Berkadia’s Midwest brokerage team closed on $214.75 million in combined sales of 14 properties, including Oak Tree Square Apartments, Lakeside Village, Cold Storage Lofts, Citadel Suites and Apartments and Ames 6 Portfolio.
Led by Senior Managing Director Alex Blagojevich and Managing Director Michael Sullivan, Berkadia’s Mid-Markets Group, which also includes Managing Director Ralph DePasquale, Senior Directors Patrick Jordan and Chris Bruzas, Directors Parker Stewart, Chris Gentry and Brett Meinzer and Associate Directors Dominic Martinez and Alex Malzone, completed the sales on behalf of its respective sellers.
“While overall activity in the multifamily investment sales space was down more than 50 percent year-over-year, our Mid-Markets Group has remained busy with gross sales through the end of September of more than $725 million. We have taken an aggressive approach to assist those clients who needed to transact despite the difficult market conditions,” said Sullivan.
Transactions recently closed by the Berkadia Mid-Markets Group include:
• Oak Tree Square Apartments is located at 12800 14th St. in Grandview, Missouri. The 189-unit garden-style multifamily property was a Section 42 LIHTC affordable deal sold by Missouri-based Worcester Investments. Managing Director John Schorgl of Berkadia’s Kansas City office secured financing for the acquisition on behalf of the buyer, a private syndicator out of Texas. The 10-year Freddie Mac loan includes three years of interest-only payments, and the deal closed on August 18.
• Lakeside Village, a 75‐unit, garden‐style apartment community in North Kansas City, Missouri, was sold by Kansas-based Eighteen Capital Group to a private syndicator new to the Kansas City market. This off-market, direct sale was completed in just 45 days, as the buyer was rushed to complete this final piece of a larger 1031 exchange. Senior Managing Director Chris Blechschmidt and Director Emily Stang of Berkadia’s Chicago office secured the acquisition financing. The deal closed on August 19.
• Cold Storage Lofts is located at 500 E 3rd St. in the River Market area of Downtown Kansas City, Missouri. Sold by a locally based Kansa City firm, Maxus Properties, this 224-unit, adaptive reuse, midrise apartment property was ultimately purchased by a New York-based investor. After launching in late March, just weeks after the start of the shutdown, the Mid-Markets Group utilized the power of their extensive network and virtual touring to show the deal to more than 150 buyer groups. After receiving more than 10 formal offers, they were able to get the deal across the finish line on September 23, at the agreed upon contract price, equating to a trailing 12-month cap rate in the low 4 percent range.
• Citadel Suites and Apartments, located at 5113 N Brookline Ave. in Oklahoma City, Oklahoma, was sold by a private family trust. The 114-unit garden-style multifamily property was purchased by a local, Kansas City-area firm after beating out more than 18 formal offers on the property, many of which had non-refundable money at execution of PSA. The deal closed on August 10.
• Ames 6 Portfolio features six multifamily properties totaling 296-units, all located in Ames, Iowa. After launching the deal in early January, the Berkadia sales team pushed more than 150 interested buyer groups into the data room despite the oncoming pandemic and huge amount of uncertainty surrounding the student housing market. The portfolio was sold by Iowa-based Professional Property Management to a private, Chicago-based firm who closed the deal on September 7 at an in-place cap rate in the mid five percent range. Properties in the portfolio include: Colleen Crest, Delores Apartments, Gateway Hills, Maple Glen, Phoenix Apartments and River Burch.