ATLANTIC HIGHLANDS, NJ — Berkadia announced the $51.97 million financing for Thousand Oaks Village, a garden-style multifamily property in Atlantic Highlands, NJ. Senior managing director Bob Falese and managing director Jeff Heath of the Philadelphia office secured the acquisition loan through Freddie Mac for the borrower, Delaware-based 165 Thousand Oaks Drive LLC. The deal closed on July 11.
The sponsorship for this transaction was led by a joint venture between Kushner Real Estate (KRE) and Verde Capital Corp. The property will undergo a substantial renovation plan intended to upgrade units and improve overall performance as part of the investment strategy. Berkadia utilized the Freddie Mac Mod Rehab Loan Program, allowing the borrower to fix a long-term interest rate in at closing, float during the renovation period and automatically convert to the already locked fixed rate upon renovation completion.
“As part of KRE / Verde’s renovation plan, KRE’s president Jon Kushner and Verde’s president Jake Reiter requested that Berkadia craft a unique solution that would allow the venture to renovate the asset while minimizing interest rate risk by allowing a rate to be locked for the entire term of the loan/investment,” said Heath. “The Freddie Mod Rehab Loan Program was tailor-made for this type of redevelopment and investment strategy.”