BETHESDA, MD – Berkeley Point Capital LLC recently closed a $49,680,000 loan for the acquisition of Foothill Place Apartments, a 450-unit garden-style, class-B+, apartment community located in Salt Lake City, UT.
The sponsor, Kennedy Wilson, a vertically integrated international real estate investment and services firm, purchased the community for $61.8 million, investing $15 million of equity in the transaction and financing the balance of the purchase with Berkeley Point. The financing was structured under Freddie Mac’s Capital Markets Execution program as a ten-year term, 3.58% fixed rate loan with two years of interest only payments.
“This asset is our second multifamily acquisition in the Salt Lake City area in the last six months, where we purchased Sandpiper Apartments in November of last year,” explains Bob Hart, president of KW Multifamily Management Group. “Foothill and Sandpiper are excellent examples of Kennedy Wilson’s value-add repositioning strategy in markets that have stable job growth with high rental demand.”
“We are pleased to once again partner with Kennedy Wilson to help them accomplish their financing objectives.” said Mitch Clarfield, Senior Managing Director of Berkeley Point Capital. “We were able to leverage our relationship with Freddie Mac to execute the best financing solution under a tight timeframe. After listening to Kennedy Wilson’s objectives, we provided several different loan structures of varying term, prepayment and interest only options from which they could choose. Once Kennedy Wilson chose Freddie Mac and the specific structure, we were able to submit the underwriting package, receive a final commitment and rate lock, all within 6 days. Our efforts helped to avoid the impact of the widening spread pressures that existed at the time and also set the customer up to be able to take advantage of a dip in Treasury yields on the day of rate lock. Freddie Mac put forth an exceptional effort working with us through the weekend to ensure a successful outcome.”
“In addition to meeting the needs of Kennedy Wilson, we were able to help facilitate the transaction for the seller, also a long time Berkeley Point client. Our experience with the property stemmed back several years, when we originally provided the seller with a rehab mezz loan used to make improvements of nearly $20k per unit. Our relationships and fiduciary partnerships were the key drivers to making this transaction work. We look forward to continuing our partnership with the firms and will continue to demonstrate our ability to execute as promised.”
Foothill Place is located in East Valley, close to the University of Utah and to Park City. The property, built in 1974, consists of 10 two- and three-story buildings situated on 18 acres. Amenities include two swimming pools, a volleyball court, dog park, rock climbing boulder and a clubhouse/leasing center with fitness center. Kennedy Wilson plans to add washers and dryers in addition to renovating the majority of the units and adding selected upgrades to the property’s common areas.
For further information contact:
Janelle Cooper, Marketing & Communications
301-347-4823 | janelle.cooper@berkpoint.com
about berkeley point capital
Berkeley Point Capital LLC is one of the nation’s leading providers of multifamily capital solutions. The firm boasts a 25+ year history and a servicing portfolio of over $28 billion representing in excess of 2,100 loans in 45 states and the District of Columbia. This extensive and diverse national platform allows us to provide our clients with superior execution in every market in the country.
Berkeley Point is owned by entities affiliated with Ranieri Real Estate Partners LP and WL Ross & Co. LLC. As part of its multifamily expertise, the firm offers the full complement of Fannie Mae, Freddie Mac, FHA, and Life Company products as well as a proprietary bridge program.
Focusing on a three-pronged strategy of exceptional people, unique multifamily capital solutions and superior technology, our team of nearly 200 people located in ten offices across the nation provides our customers a competitive advantage through speed, creativity, ease of interface and certainty of execution.
For more information on Berkeley Point Capital, please visit our website at www.berkpoint.com