Berkadia secures $52 million in financing for multifamily property in Fredericksburg
Berkadia announced Thursday the recent financing of Allure at Jefferson, a multifamily community to be constructed in Fredericksburg. Senior Managing Director David Blake and Senior Director Stephen Murden of the Richmond office originated the $52 million construction loan through Berkadia’s HUD program. The borrower was The Breeden Co., a Virginia Beach-based real estate services firm.
The loan offers a 3.69 percent fixed interest rate and an 85 percent loan-to-cost ratio.
“The Fredericksburg and greater mid-Atlantic market has been experiencing dynamic growth to close the year,” Blake said in a statement. “It was a pleasure to help a longtime client expand their geographic footprint into such thriving area.”
“We are very excited to begin construction on the Allure at Jefferson,” said Terry Marshall, CFO of The Breeden Co. “This is our largest HUD multifamily project to date, and it is our first venture into this market.’’
The project will be located along Jefferson Davis Highway, providing access to nearby downtown Fredericksburg, Washington, D.C., and Richmond. The property will consist of 14 three- and four-story buildings offering 338 one, two- and three-bedroom units. The property also will offer 42 attached garages, 18 detached garages and 142 storage spaces.
Due to the recent growth of the Fredericksburg market, The Breeden Co. has plans for a second phase that will provide an additional 112 apartment units adjacent to the subject site.
Berkadia is a joint venture of Berkshire Hathaway and Leucadia National Corp. It offers a suite of services to multifamily and commercial property clients, including mortgage banking and investment sales.