Berkadia has added low-income housing tax credit (LIHTC) syndication and advisory services to its affordable housing platform.
The company announced it is integrating Riverside Capital, a LIHTC investment firm, into its business.
The move comes after Berkadia acquired an interest in Riverside Capital, an affiliate of The Michaels Organization, in 2018. “It became more and more apparent that Berkadia and Riverside working together and integrating would be a better offering for our clients and a better offering for our producers as well,” said Justin Wheeler, Berkadia CEO, who described the latest move as an operational change.
Michaels, a prominent owner and developer of affordable housing, continues to hold its stake in the syndication firm. However, the business becomes part of Berkadia’s affordable housing group and brand, and the Riverside Capital name will no longer be used.
By being able to syndicate and invest in LIHTCs, Berkadia will be able to offer yet one more service to its developer clients, according to Wheeler.
Looking ahead, he said the goal is to expand the business in 2020 and beyond. “We believe this is a platform that can do two or three or four times what it’s been doing in the past,” Wheeler told Affordable Housing Finance. “Having it become part of the Berkadia family introduces Riverside into a very large family that can now think of this as one of our core competencies. There are some real opportunities, and we’re going to be pushing hard to grow that platform as smartly and as quickly as we can.”
Sebastian Corradino, former Riverside president and CEO, becomes senior managing director of the Berkadia affordable housing team.
“The former Riverside acquisitions, investor relations, and asset management teams will continue to provide the exceptional, personalized level of service our clients expect while also giving them access to new opportunities the Berkadia network offers,” Corradino said.
Riverside has guided the financing and syndication for more than 7,700 affordable apartment homes across the country, representing more than $1 billion of equity.
A joint venture of Berkshire Hathaway and Jefferies Financial Group, Berkadia completed about $34 billion in overall loan originations and investment sales last year.