Troutman Sanders Assists Berkadia With Funding of $1.5 Billion Freddie Mac Transaction
RICHMOND, Va. – Troutman Sanders LLP is pleased to announce that it served as lender’s counsel for Berkadia Commercial Mortgage LLC (Berkadia) on its recent closing of a $1.5 billion loan portfolio through Freddie Mac for Southern Management Corporation, the largest privately owned residential property management company in the Mid-Atlantic region. The transaction was the largest loan funding in Berkadia’s history and the largest multifamily transaction to date by Freddie Mac to be eligible for securitization through its Capital Markets Execution℠ program.
Originated by Berkadia’s Senior Vice President, John M.R. Reed, the portfolio is made up of individual loans ranging from $2.5 million to $135 million. The loans were cross-collateralized and secured by 69 multifamily assets located in northern Virginia and Maryland. Mostly Class A and Class B properties, the communities are a mix of garden, mid-rise, and high-rise buildings that contain over 23,000 total apartment units and more than 250,000 square feet of office and retail space.
“Closing a portfolio of this size at year-end was a challenge,” said Reed. “But thanks to the excellent cooperation of the entire Berkadia team; the Southern Management team – including their attorneys and accountants; the Freddie Mac production, underwriting, and legal teams; Troutman Sanders as lender counsel; and the many third-party consultants involved, we were able to close it on time and just as planned.”
Richmond partner Bernice Cilley lead the Troutman Sanders team. “Bernice was masterful in the way she handled the complex legal issues and interacted with counsel for Freddie Mac and Southern Management Corporation,” said Mark Shiembob, Troutman Sanders’ senior partner in its Multifamily Finance practice group and firm executive committee member.
Troutman Sanders has long-standing experience representing lenders active in the multifamily housing industry and is recognized nationwide for its leading skills in closing and delivering loans secured by multifamily projects to secondary market investors. The firm has 19 lawyers dedicated full-time to its Multifamily Housing finance practice and also relies on the firm’s other lawyers for help in their practice areas as needed.
About Berkadia™:
Berkadia Commercial Mortgage LLC is one of the most prominent lenders in the commercial real estate industry and a highly rated special, master and primary servicer managing a portfolio of more than $200 billion as of year-end 2012. As a correspondent for insurance companies and other institutional lenders and a leading approved lender for Fannie Mae, Freddie Mac and HUD/FHA, Berkadia offers clients access to capital for the acquisition, construction, rehabilitation or refinance of multifamily and commercial real estate properties.
To learn more about Berkadia, please visit www.berkadia.com.
About Southern Management Corporation:
Southern Management Corporation is the largest privately-owned residential property management company in the Mid-Atlantic region. The company owns and manages 74 apartment home communities comprising more than 25,000 apartment homes throughout the Baltimore- Washington region. With more than 1,500 team members, Southern Management was also recognized by Washingtonian Magazine as one of DC’s “50 Best Places to Work” in 2011.
For more information about Southern Management visit www.southernmanagement.com.
About Troutman Sanders
With a diverse practice mix, workforce and footprint, Troutman Sanders has cultivated its reputation for a higher commitment to client care for over 120 years. Ideally positioned to help clients across sectors realize their business
goals, the firm’s 650 attorneys transact for growth, resolve mission-threatening disputes and navigate complex legal and regulatory challenges. See
troutman.com for more information.