Berkadia mortgage unit in on refinancing of Pennsylvania properties
Berkadia Commercial Mortgage helped refinance Red Lion Plaza in Northeast Philadelphia and lined up funds to refinance the Curtis building in Sharon Hill. Berkadia is the newly formed company that emerged when Berkshire Hathaway Inc. and Leucadia National Corp. bought the North American loan and servicing business from Capmark Financial Group Inc. At Red Lion Plaza, Berkadia arranged $17.5m to refinance the shopping center at Red Lion Road and Roosevelt Boulevard. The interest rate on the non-recourse loan was fixed at 6.25 percent. When Onyx Equities of Woodbridge, N.J., bought it in 2006 the 229,200 square-foot center had two large vacancies that were filled last fall. The refinance allowed the borrower to pay off its maturing acquisition loan and recapture recent capital investments at the center. Rob Lipson of Berkadia’s Red Bank, N.J., loan origination office and Jim Badolato of the Philadelphia office sourced the financing through a regional banking relationship. When purchased by the current ownership in 2006, the asset had two major vacancies. They have since successfully back-filled the empty box spaces and stabilized the center. Red Lion Plaza is now fully occupied with a diverse tenant base, including Best Buy, Staples, American Signature Furniture, and a new Planet Fitness.