Berkshire Hathaway JV Berkadia buys Central Park Capital Partners
Berkadia, a joint venture run by Berkshire Hathaway and Jefferies Financial Group, is acquiring real estate capital advisory firm Central Park Capital Partners to diversify its capital sources.
The financial terms of the transaction were not disclosed.
"As the cycle matures and deal structures become more sophisticated, tapping into a wide range of joint venture capital is critical to our clients," Justin Wheeler, Berkadia's CEO, said in a press release.
CPCP principals Noam Franklin, Chinmay Bhatt and Cody Kirkpatrick are launching Berkadia's structured capital group as a result of the acquisition. Franklin, who is CPCP's founder and managing principal, will be based in Berkadia's New York headquarters. Bhatt also will work out of Berkadia's New York office and Kirkpatrick will be based in Berkadia's Denver office.
"We've been working closely with the Berkadia team recently and have been impressed that they share our targeted approach to client engagement and deal execution," Franklin said in the press release.
"We have strong domestic and international capital relationships, particularly in the Middle East, Canada, Europe and Asia. In joining Berkadia, we're bringing a diverse roster of new capital sources to the table."
Berkadia was the second largest multifamily lender selling loans to Freddie Mac, and the third largest multifamily lender selling loans to Fannie Mae in 2018.
Most commercial mortgage bankers expect the number of multifamily deals to match or fall off from 2018 levels in the coming year and for available capital to increase or stabilize, according to a recent Berkadia survey.