**Berkadia Launches New CRE-Focused Podcast Series: “Inside the Deal”**
Berkadia has unveiled a new podcast series, *Inside the Deal, a CRE Podcast by Berkadia®*, designed to highlight compelling commercial real estate (CRE) success stories. The series offers behind-the-scenes insights into the complexities of high-stakes CRE deals, including challenges, strategic solutions, and notable outcomes.
In the debut episode, Berkadia’s Executive Vice President and Head of Production, Ernie Katai, hosts a conversation with Senior Managing Director Tucker Knight and Senior Real Estate Analyst Clay Faust from Berkadia’s Houston office. Also joining the discussion is James Goldberg from Citi, who played a key role in structuring a $700 million CMBS loan for an 18-property multifamily portfolio across the Sunbelt region.
One of the most pressing challenges in the deal wasn’t the size or geographic reach of the portfolio, but rather its diversity. The 18 properties varied in asset type and performance, with much of the operating income going directly to a special servicer. In several cases, that left limited funds for necessary maintenance, and the debt on 11 properties was nearing default.
“There was no cash flow that was going to be generated from this portfolio, which kind of got the conversation started,” said Knight.
Initial discussions with the borrower began in September 2024 and proceeded steadily over the following months. Despite numerous obstacles, Knight and Faust assessed that a successful outcome was possible. “Half of the deals we underwrite are cash-starved in one way or another,” Knight added.
Goldberg was identified early as the lender best suited to navigate the situation. “We knew it was going to be a tough slog,” Knight noted. “The properties were underperforming from a maintenance perspective, so I wanted to find someone who would be straightforward and had the horsepower to get it done.”
In the episode, the team delves into the process behind the $700 million financing, including the senior loan structure, Greystar’s involvement, and the obstacles created by the economic landscape. “We were able to get [the loan] sized to effectively create a cash-neutral deal across the whole stack by leaning in hard,” said Knight.
Goldberg also offered insight into the challenges inherent to today’s capital markets. “There are so many curveballs in the capital markets today with everything going on in the economy, in the macro markets,” he said. “And the properties are living and breathing animals that move around on a daily basis. So, it’s definitely a lift. But we’re wide open for business. We’re seeing tremendous demand. We’ve gotten a bunch of inquiries after this deal closed, from other sponsors who are out there in similar situations.”
*Inside the Deal* will continue to feature Berkadia’s investment sales advisors, mortgage bankers, clients, and lending partners as they share perspectives on executing high-value transactions. “Every deal presents unique challenges, and in this dynamic market, we aim to showcase the strategies of the nation’s top closers as they navigate these complexities,” said Katai.
The podcast is available on major platforms including Apple Podcasts, Spotify, Amazon Music, and iHeartPodcasts.
