ODESSA, TX – Berkadia secured a $25,125,000 loan for the acquisition of Faudree Ranch Apartments, a 300-unit apartment community located in Odessa, Texas. Berkadia South Florida Senior Managing Director Charles Foschini and Managing Director Christopher Apone arranged the loan on behalf of the borrower, Faudree Ranch Apartments, LLC. The property was 90% occupied at the time of sale.
JP Morgan originated the five-year, fixed-rate loan at a competitive interest rate, two years of interest, and a 67% loan-to-value ratio.
“The borrower is a long-time client with 1031 capital making a well-timed acquisition in the heart of America’s energy corridor,” said Foschini. “Though the purchase was well below replacement cost and at a very high cap rate, there were not many lenders who shared the same opportunistic vision. We were successful in generating a competitive market for the loan and found a CMBS lender who performed flawlessly and delivered the loan exactly according to our application terms.”
Built in 2014, Faudree Ranch Apartments is a 300-unit apartment complex composed of several three-story buildings offering one-, two-, and three-bedroom units. Rents range from $1,220 to $2,200 per month. The property features apartment amenities such as built-in computer desks, six-panel interior doors, and nine-foot ceilings, as well as community amenities that include a bocce ball court, business center and covered parking.
Conveniently located near W Highway 80 East, the community is close to the Odessa Country Club, Odessa-Schlemeyer Field airport, Ratliff Stadium, and The University of Texas of the Permian Basin.
About Berkadia: Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com