Troutman Sanders’ Multifamily Housing Finance Practice Advises Berkadia in Securing Nearly $1 Billion for Beacon Portfolio Acquisition
RICHMOND, Va. – Troutman Sanders LLP recently served as lender’s counsel for Berkadia Commercial Mortgage LLC in its arrangement of nearly $1 billion in acquisition financing for 16 of the 25 properties that comprise the Beacon multifamily portfolio. Located in Boston, Baltimore, Chicago, Washington D.C. and Philadelphia, the properties were recently acquired by an affiliate of Harbor Group International as part of a larger $1.8 billion transaction — the company’s largest transaction to date.
The Troutman Sanders team, led by Richmond Partner Jeremy McLean, assisted Berkadia with the Freddie Mac financing which closed on November 30. Eleven of the properties were financed with a fixed rate vehicle for over $789 million, and five properties were financed with floating rate debt for over $138 million.
In October 2015, the Beacon portfolio properties had been part of the larger Lighthouse portfolio of 107 properties financed by Berkadia for Lone Star Real Estate Fund IV’s acquisition of Home Properties, Inc. Troutman Sanders’ Multifamily Housing Finance team served as lender’s counsel for Berkadia during that transaction as well, which had an aggregate loan amount of $5.121 billion.
“It was terrific working with the Harbor Group, Berkadia and Freddie Mac teams on this transaction,” McLean said. “We value our relationship with Berkadia; they are at the forefront of these types of transactions,” he continued. “This underscores our group’s extensive experience and skillset in the multifamily industry and our commitment to all of our clients as trusted counsel for these transactions.”
With 35 full-time, dedicated lawyers in the multifamily practice, Troutman Sanders has handled some of the industry’s most significant transactions, including nine of the largest multifamily-apartment portfolio financings since 2012, each of which had an aggregate loan amount in excess of $1 billion. This year alone, the practice handled more than 2,600 loan and servicing transactions with a combined loan value of more than $46 billion.
Troutman Sanders’ Multifamily Housing Finance practice is the premier nationwide practice representing lenders in the multifamily and senior housing finance industry. The practice focuses on counseling mortgage banking clients in origination, sale and servicing of loan transactions sold to secondary market investors — primarily Fannie Mae and Freddie Mac — and other financial institutions and securitization program participants.
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