Berkadia Originates $534M for Sun Belt Multifamily Portfolio Acquisition

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RREAF Holdings and investment partners DLP Capital and 3650 REIT have nabbed $534 million of acquisition financing for a three-phase multifamily portfolio totaling 21 properties in the Southern U.S., the joint venture announced Tuesday.

Berkadia originated the Freddie Mac loan for the deal, which launched with a 13-asset multifamily portfolio totaling more than 2,000 units across the Sun Belt region from Carter Funds. Berkadia arranged the debt package for the entire transaction and Cushman & Wakefield represented Carter Funds.

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“We began working on this portfolio with RREAF day one and explored all financing avenues available including SASBY executions and structured products from many of the largest investment banks in the space,” Nathan Stone, a managing director in Berkadia’s Dallas office, said in a statement. “After weighing all options, Freddie Mac emerged as the ideal partner for RREAF in this transaction and we are pleased that RREAF trusted Berkadia’s experience and ability to execute on a transaction of this magnitude.”

Stone added that Berkadia has now closed 34 loans with RREAF in a 14-month period with loan balances exceeding $647 million. Dallas-based RREAF has acquired roughly $1 billion of real estate assets in the last 12 months and is planning two other tranches of its three-phase multifamily acquisition through November that will total in excess of 4,000 units. The apartment complexes are located in Florida, Georgia, Alabama, North Carolina, Louisiana and Texas. 

“This large acquisition is a culmination of months of negotiations, due diligence, research and financial structuring,” Kip Sowden, RREAF’s CEO, said in a statement. “This is one of the largest real estate transactions in the country since the COVID outbreak.”

Freddie Mac did not immediately respond for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.