Berkshire Acquires Limekiln's Stake in MF1, Gains Full Ownership
Berkshire Residential Investments has acquired Limekiln’s 50% stake in multifamily lender MF1, becoming the platform’s sole owner. The deal concludes an eight-year joint venture during which MF1 originated approximately $32 billion in apartment loans and became a major issuer of collateralized loan obligations (CLOs). However, the company has faced elevated distress metrics due to its floating-rate bridge loan portfolio, which was impacted by rising interest rates. MF1’s exposure to distressed assets increased significantly. In Q1 2025, nearly 69% of loans were on a special servicer watchlist with an overall distress rate at 13.7%. The lender has since begun transitioning toward fixed-rate products and completed its first fixed-rate CMBS transaction in early 2026. Despite these efforts, the platform still faces challenges from legacy bridge-loan risks. The ownership shift occurs amid broader stress in multifamily credit markets, with sector distress rates rising to 13% by July 2025. Under Berkshire’s control, MF1 is expected to continue its product expansion while managing existing portfolio risks.
Topics: Berkshire Hathaway CLOs multifamily lending real estate