Troutman Sanders Multifamily Housing Finance Practice Assists Berkadia with Funding of $5.1 Billion for Lone Star’s Multifamily Portfolio Acquisition
RICHMOND, Va. - Troutman Sanders Multifamily Housing Finance practice served as lender’s counsel for Berkadia Commercial Mortgage LLC on its recent closing of a $5.121 billion loan through Freddie Mac for Lone Star Real Estate Fund IV (Lone Star). The transaction represented the largest multifamily loan that Berkadia has executed with Freddie Mac. The seven-year loan was used by Lone Star to acquire a portfolio of 107 multifamily properties located across nine states.
In a news release, Berkadia commented, “This is the largest multifamily transaction Berkadia has executed with Freddie Mac to date, representing an outstanding team effort by everyone involved.”
The mortgage financing assisted Lone Star in its acquisition of Home Properties, Inc., which previously owned more than 36,500 units in Florida, Illinois, Massachusetts, Maryland, Maine, New York, New Jersey, Pennsylvania and Virginia.
Richmond partners Mark Shiembob and Jeremy McLean led the Troutman Sanders team. “This was a complex, time-sensitive transaction that required top legal acuity and seamless interaction with other counsel,” said Mark Shiembob, Troutman Sanders’ senior partner in its Multifamily Housing Finance section and firm executive committee member.
With 26 full-time, dedicated lawyers in the multifamily practice, we have handled some of the industry’s most significant transactions. Examples include six of the largest multifamily-apartment portfolio financings between 2012 and 2015, each of which had an aggregate loan amount in excess of $1 billion. During that same time period, the practice has handled more than 5,800 loan and servicing transactions, in every US state, with a volume in excess of $87 billion. In 2015 alone, the practice handled 2260 loan and servicing transactions totaling $37 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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