F inancial D igest F eaturing T ax I ssues /A ccounting
M id A tlantic Real Estate Journal — July 23 - August 19, 2021 — 7A
www.marej.com
Hudgins and Richards orchestrate transactions Berkadia completes sale and secures $100M in financing for student housing portfolio in Virginia
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two-, three- and four-bedroom floor plans with in-unit wash - ers and dryers and full appli- ance packages. Community amenities include a swimming pool, a fitness center, a tan - ning salon, a grilling station and a two-story clubhouse. Collegiate Suites at Blacks- burg is a 210-unit property located at 1310 Henry Ln. The property features one-, two- and four-bedroom floor plans with full appliance packages, laundry rooms with storage, living room and bedroom fur- niture packages and private bathrooms. Community ame- nities include a clubhouse with a fitness center, a coffee bar, a game area, picnic areas with grilling stations, a basketball court and a tanning bed. The properties afford resi- dents convenient access to Virginia Polytechnic Institute and State University, U.S. Rte. 460 and the shops and restaurants along North Main St. MAREJ and cultural events, including high school sports as well as motorcar racing, boxing tour- naments and concerts. The ballpark fell into disrepair in the late 1990s, and has been largely neglected for the last two decades, opening the door for the redevelopment initia- tive being led by BAWDevelop- ment and RPM Development Group. In addition to the 7,800-seat athletic facility, the project also includes ground-up develop- ment of: ● A 12,000 s/f restaurant and event space that will pay homage to the professional and high school athletic exploits at Hinchliffe Stadium, as well as related racial issues ● A six-story, USGBC LEED Platinum-certified affordable senior housing building featur- ing 75 studio, one- and two- bedroom units ● A 5,200 s/f preschool; and ● A 314-space structured parking garage. MAREJ
representing the seller and Berkadia Richmond Mortgage Banking arranging the debt for the buyer, and a smooth execution was the end result.” “The sellers were able to use Berkadia’s knowledge and resources to help secure an ag- gressive price,” said Hudgins. “Reliant Group was already in the market and a great com- pany to work with throughout the transaction.” Hunters Ridge is a 72-unit property located at 1401 and 1441 Seneca Dr. The property features spacious four-bed- room floor plans with a bal - cony or patio, in-unit washers and dryers and full appliance packages. Community ameni- ties include a clubhouse, a coffee bar, a gaming area with a pool table, grilling stations, a full-sized basketball court, a fitness center and a tanning salon. Maple Ridge Townhomes is located at 344 Red Maple Dr. The 314-unit property features the future of not only Hinchliffe Stadium, but the broader im- pact it will have for the entire city of Paterson.” The financing will enable the ongoing redevelopment of the stadium. U.S. Bank provided capital to the stadium redevelopment as part of its ongoing ‘U.S. Bank Access Commitment’ initiative, which focuses on supporting businesses owned by people of color, helping in- dividuals and communities of color advance economically and enhancing career opportunities for employees and prospective employees. Originally constructed in 1932, Hinchl i f fe Stadium once served as home to Negro League teams such as the New York Black Yankees and New York Cubans, in an era when many of baseball’s most talented players were barred from the sport’s biggest stage. Over the decades, the ballpark hosted a wide range of athletic
LACKSBURG, VA — Berkadia announced the sale of and financ -
ing secured for a three- property stu- dent housing portfolio in Blacksburg. The proper- ties in this portfolio in- cluded Hunt- e r s R i dg e , Maple Ridge Townhomes and Co l l e - giate Suites o f B l a c k s - burg. senior director Da- vidHudgins of Berkadia
David Hudgins
Hunters Ridge
lion in financing for the acqui - sition of this property on be- half of the buyer. The five-year Pacific Life Insurance loan included full-term interest- only, a 30-year amortization schedule and a 2.66 percent interest rate. “This deal was challenging on so many fronts as uncer- tainty from the pandemic kept delaying our ability to arrange the financing and as lend- ers were extremely selective when contemplating student
housing deals,” said Richards. “Fortunately, we had an ex- tremely strong experienced buyer in Reliant CAP IX Fund that already owned a student community at VA Tech. Ad- ditionally, Pacific Life took the time to understand how tight the Blacksburg market is (specifically student housing at VA Tech) and offered a very attractive five-year structure. This was a win-win for all parties with Berkadia New- port News Investment Sales
John Richards
Newport News completed the sale on behalf of the seller and the buyer. The buyer was Cal- ifornia-based Reliant Group . Managing director John Richards of Berkadia Rich- mond secured the $100.2 mil-
BAWDevelopment announces $94Million in construction financing for Negro League Stadium mixed-use project
PATERSON, NJ — BAW Development has closed on the $94million financing for the redevelopment of the Hinchliffe Stadium Neighborhood Res- toration Project (HSNRP), in Paterson, which includes Hinchliffe Stadium, one of just two remaining stadium struc- tures that was home to a Negro League baseball team. The financing comes via a unique combination of private loans, tax credits and other ve- hicles, including a $60 million construction loan from Gold- man Sachs and $10 million in New Market Tax Credit and Federal Historic Tax Credit equity from U.S. Bancorp Community Development Corporation , U.S. Bank’s tax equity and community develop- ment subsidiary. The financing also includes $21 million of New Market Tax Credit allocation from four Community Development Entities (CDE): Community Loan Fund of New Jersey,
Hinchliffe Stadium
Consortium America, RBC Community Development and USBCDE. The Passaic County Improvement Authority also issued a bond in support of the project, purchased by Goldman Sachs through its construc- tion loan, which serves as a bridge loan for the New Jersey Economic Redevelopment and Growth (ERG) credits. All financing was managed by BAW’s partner on the re- development, RPM Develop- ment Group . “When it comes to a project of this nature, there’s no question
that it takes a strong team to put all the pieces in place, and we are extremely thankful for the diverse group of financial partners that came together to fund the reimagination of this historic site,” said Baye Adofo-Wilson , founder of BAW Development. “Given the challenges of the last year, pushing this long-awaited infrastructure project forward required a highly complex, creative financing structure from all parties. The successful closings are a testament to our partners’ belief in the vision for
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