Berkadia and The Michaels Organization Close RAD Deal in Baltimore

January 6, 2020

Philadelphia, PA – January 6, 2020– Berkadia’s Affordable Housing team is pleased to announce it has invested $15 million in Rosemont Tower, a 203-unit senior living property in Baltimore, MD. The Property was originally built in 1984 and is comprised of a single 13-story elevator building. Of the 203 units, 21 units will offer special accommodation for physical, visual, and hearing-impaired tenants.

“Berkadia is extremely excited to expand our partnership with Michaels to finance the improvements to this community. The upgrades to Rosemont Tower will make this property an appealing housing resource for Baltimore.” said Rick Slagle, Managing Director at Berkadia.

Berkadia will be partnering with Michaels Development Corporation (“MDC”) as the developer and the Baltimore Housing Authority as the as the co-developer on the project. Michaels Management Affordable (“MMA”, formerly Interstate Realty Management) is set to serve as the property manager.

“Michaels completing the RAD conversion of Rosemont Tower is a fantastic opportunity to renovate an aging property in need of substantial repairs and to enhance the quality of life of residents, who have few housing choices and have patiently awaited reinvestment,” said Curtis Adams, Vice President of Development at Michaels’. “We are thankful to HABC for selecting Michaels for this undertaking and to all lenders and investors for their financial support to make this all possible.”

Rosemont is being financed by equity from Berkadia’s purchase of 4 percent Federal Low-Income Housing Tax Credits, tax exempt bonds issued by the Maryland Department of Housing and Community Development, a HUD 221(d)4 loan provided through Walker and Dunlop, a Rental Housing Works loan from Maryland CDA, and a seller note through the Baltimore Housing Authority.

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