Berkadia Arranges $21.5M Loan for Acquisition of Apartments Near University of Pugent Sound
Tacoma, Washington – February 9, 2024 – Berkadia announced today that it has secured financing for the acquisition of The Duo Apartments, a brand new 104-unit, Class A multifamily community located in University Place, a suburb of Tacoma, Washington. Director Michael Manolides and Managing Director Robert Doxsee of Berkadia Seattle, along with Vice President Michael Basinski and Managing Director Brad Williamson of Berkadia Miami, arranged the financing on behalf of the sponsor, a private investor who paid $30.46 million for the community, which is still in the early stages of lease up. The deal closed on February 6.
The lender, Coral Gables-based investment firm Bayview, provided a $21.5 million, five-year, fixed-rate loan with flexible prepayment terms.
“The sponsorship’s track record in the local submarket, along with the property’s high-quality suburban location near major employers and retailers, made this a great addition to their portfolio,” said Manolides. “Despite the volatility in the capital markets and the unique nature of the in-progress lease-up, Berkadia was able to find a non-recourse, fixed rate loan which greatly reduced the sponsor’s interest rate risk over the near term.”
“There was strong demand from the capital markets given the asset’s proximity to major employers and retailers,” added Basinski. “The sponsor was able to make a strategic acquisition given the lease-up nature of the deal and we are excited about the execution.”
Located at 4201 Bridgeport Way West, The Duo Apartments were built in 2023 and feature studio, one- and two-bedroom floor plans ranging from 472 square feet to 989 square feet. Individual apartments include washer/dryer, fully equipped stainless steel appliances, faux wood flooring, designer finishes, and a patio/balcony. The pet-friendly community’s amenities include a recreation room, fitness center, an outdoor patio/BBQ area, off-street parking and garages available for rent.
The Duo Apartments are conveniently located just steps from popular retailers like Trader Joe’s and Whole Foods, and approximately 15 minutes from some of the area’s top employers including University of Puget Sound, University of Washington Tacoma, Tacoma General Hospital, Joint Base Lewis-McChord, and the Port of Tacoma.