The Southwest Effect :The success and profitability of Southwest's business model led to a common trend being named after the company, the Southwest Effect. Since Southwest's original mission in Texas was to make it less expensive than driving between two points (in the early 1970s, during the first major energy cost crisis in the U.S.), it developed a template for entering markets at rates that allowed the airline to be profitable, yet only on the basis of lean operations and high aircraft use. The key concept to the Southwest Effect is that when a low-fare carrier (or any aggressive and innovative company) enters a market, the market itself changes, and usually grows dramatically. For example, when fares drop by 50% from their historical averages, the number of new customers in that market may not just double, but actually quadruple, or more.

by DIANA GOLOBAY

Berkadia Commercial Mortgage, a newly formed entity owned by Berkshire Hathaway and Leucadia National Corp., provided more than $28m for construction and refinance purposes.

Berkadia recently originated a $18.7 loan through its Freddie Mac (FRE: 1.24 +3.33%) approval program to refinance Altamont Summit in Portland, Ore. (pictured above), according to a statement Monday. The multifamily community consists of 439 luxury apartment units, which were 95% occupied at the time of refinance.