Berkadia Commercial Mortgage to originate fixed-rate loans for CMBS
[Update: corrects to indicate Berkadia will originate loans not acquire loans.] Berkadia Commercial Mortgage plans to originate fixed-rate loans to sell to a commercial mortgage-backed securities issuer. The company, which is 50% owned by investment giant Berkshire Hathaway (BRKA), will use its own capital to fund the loans that may be available as soon as the beginning of next year. Bloomberg reports it may be up to $200 million of loans. "Berkadia’s fixed-rate loan program is unique in the market," said senior vice president Joseph Franzetti. "We are in discussions with potential capital markets partners, and Berkadia is poised to be the only mortgage banking firm providing proprietary capital for CMBS loans. This gives our clients the best of both worlds—access to the capital markets delivered by local mortgage bankers." Berkadia also has another plan in development to provide short-term, floating-rate loans as interim financing for select multifamily borrowers with pending Fannie Mae or Freddie Mac executions. The bridge loan program will be managed by the company’s Agency Lending Group, lead by Executive Vice President John Cannon, who said the new programs give clients more choices after "more than two years characterized by extremely limited financing options." Write to Jason Philyaw.