By Joshua Burd
A mortgage banking and investment firm has brokered a nearly $43 million refinancing loan for a well-known high-rise apartment building in Newark, the company announced.
In a news release, Berkadia said it secured the seven-year loan for 108-136 Martin Luther King Blvd., also known as the Pavilion Apartments. Managing Director Allan Freedman of the firm’s Los Angeles office secured the refinancing loan, along with David Stepanchak from George Smith Partners.
The loan, secured through Freddie Mac, features a 4.08 percent fixed interest rate with a 75 percent loan-to-value ratio on a 30-year amortization schedule, the news release said. The deal closed on March 8.
“Pavilion is one of the largest rent-controlled properties in New Jersey, which was perfect for Freddie Mac given their mission and focus on workforce housing,” Freedman said.
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corp., said Jeffrey Rabin of Resch Polster Berger LLP facilitated a complex ownership structure on behalf of the sponsor.
