Berkadia Acquires CPCP, Launches Structured Capital Group

Justin Wheeler, CEO, Berkadia

Berkadia has acquired Central Park Capital Partners, a boutique real estate capital advisory firm focused on arranging joint capital investments and structured capital from international and domestic institutional and qualified capital sources, to launch Berkadia’s Structured Capital Group.

Terms were not disclosed, but CPCP’s Founder & Managing Principal Noam Franklin and Principals Chinmay Bhatt and Cody Kirkpatrick will join the firm to run Berkadia’s Structured Capital Group. Franklin and Bhatt will be based out of Berkadia’s New York City headquarters, while Kirkpatrick will operate out of the firm’s Denver office.

“With our acquisition of Central Park Capital Partners, we’re redoubling our efforts to make the accessibility of joint venture and structured capital a true differentiator with new levels of personalization and customization for the mutual benefit of our clients,” Berkadia CEO Justin Wheeler said in a prepared statement. “As the cycle matures and deal structures become more sophisticated, tapping into a wide range of joint venture capital is critical to our clients. Having worked with Noam, Chinmay and Cody on a number of successful deals, CPCP was the obvious choice for a competitive acquisition.”

Asked whether there were thoughts about building out its own structured capital group instead of making a competitive acquisition, Wheeler told Commercial Property Executive, “We are constantly evaluating opportunities. This one presented itself and we are excited about it.”

“With the launch of Berkadia’s Structured Capital Group, we’re truly a one-stop shop—enabling clients to take advantage of competitive opportunities in the market for a more streamlined manner and driving greater value,” Wheeler added.

Last year, Berkadia completed more than $34 billion in combined mortgage banking and investments sales production across more than 1,800 transactions.

Noam Franklin, Founder & Managing Principal, CPCP

“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 prepared remarks. “We have strong domestic and international capital relationships, particularly in the Middle East, Canada, Europe and Asia.”

By joining Berkadia to launch the new group, Franklin said they are “bringing new capital sources to the table, creating enhanced joint venture matchmaking opportunities backed by best-in class insight, technology and experience.”

Wheeler told CPE, “the cycle is mature and capital sources evolve as time goes on.”

Franklin agreed. “Considering current market conditions, owners and developers are looking beyond their traditional partners and seeking to grow their stable of joint venture funding sources in order to capitalize deals.”

Recent Berkadia deals

This week, Berkadia completed the $76 million sale of ReNew at the Shops, a 400-unit garden-style multifamily property in Mission Viejo, Calif. Berkadia worked on behalf of the seller, FPA Multifamily, and the buyer, A&M Properties. The Berkadia team also helped the buyer assume the existing $37.6 million Freddie Mac loan against the property.

Last month, Berkadia completed the sale of the Kensington Commons and the Charlee Lofts, two multifamily properties in San Diego, for a combined $28 million.

In January, Berkadia arranged a $33.2 million loan in Cleveland on behalf of The Wolstein Group, the owner of the U.S. Bank Center. The 15-story, 283,000-square-foot building has office space as well as 15,000 square feet of retail use. It has an on-site conference center and a parking lot accommodating more than 400 vehicles. The U.S. Bank Center loan came less than a month after Berkadia secured a $100 million refinancing for the Ernst & Young Office Tower, also in Cleveland.

Images courtesy of Berkadia