Still Active Fannie, Freddie Dole Out $53M for M-F Deals

Still Active Fannie, Freddie Dole Out $53M for M-F Deals
March 24, 2009
By: Elena Gontar, Staff Writer, Commercial Property News

With the finance industry suffering, securing a loan of any size is not as easy as it used to be. But despite the current economy, Fannie Mae and Freddie Mac remain active sources of financing. In one of the agencies' latest deals, Arbor Commercial Funding L.L.C. announced the funding of three loans totaling $53 million under the Fannie Mae DUS product line.

Financing for the three multi-family properties was arranged by Carolina Mortgage Co. in Fayetteville, N.C.

The loans included a 288-unit Battleground North Apartments, located in Greensboro, N.C., in the amount of $16.2 million; Eagle Point Village, a 300,000-unit complex in Fayetteville, in the amount of $18,7 million and Cedarcrest Village, a 300-unit community in Lexington, S.C., in the amount of $18 million.

Just last week CPN reported that the apartment market's attractive fundamentals are translating into a more or less regular flow of deals for Capmark Finance Inc., through its Freddie Mac and Fannie Mae programs. The real estate loan servicer originated a total of approximately $63.9 million in permanent debt for two multi-family properties located in Philadelphia and Pembroke Pines, Fla. One of the properties was the 320-unit Pembroke Cove in Pembroke Pines, and Capmark orchestrated a $30.9 million Freddie Mac loan for Pembroke Cove South L.L.C. for the purchase of the 361,100-square-foot garden-style complex. Some of the other major transactions include the company's orchestration of nearly $40 million in permanent debt from Fannie Mae for the refinancing of a 320-unit multi-family asset in North Wales, Pa., and the origination of an aggregate $62.4 million in permanent fixed-rate Fannie Mae debt for the refinancing of two apartment properties in Connecticut.

CPN also reported in early March that Colonial Properties Trust closed a $350 million credit facility originated by PNC ARCS L.L.C. for repurchase by Fannie Mae, which, despite a 2008 loss of $58.7 billion, is not deferring from big deals. Colonial's new credit facility, secured by 19 multi-family assets encompassing an aggregate 6,565 residential units, comes with a 10-year term and a 6.04 percent weighted average fixed interest rate.

Last year Denver-based multi-family REIT UDR Inc. closed a $225 million secured loan that includes an option to borrow an additional $175 million. The 10-year credit facility was originated by PNC ARCS L.L.C., for repurchase by Fannie Mae.

Also in late 2008, Freddie Mac purchased a $38.7 million mortgage from Holiday Fenoglio Fowler L.P., paving the way for the developer of a 612-unit Lincoln, Neb., apartment community to retire construction financing for the project. The 10-year fixed-rate mortgage was sold to Freddie Mac under the agency's Capital Markets Execution SM pilot program. Finally, in November the Dallas office of Holliday Fenoglio Fowler secured a $50.78 million loan through Freddie Mac for the owners of two Alabama multi-family properties with a total of 792 units.

Fannie Mae--which, along with Freddie Mac, was taken over by the government last year--asked for $15.2 billion from the U.S. Department of the Treasury on February 25 under the Senior Preferred Stock Purchase Agreement to erase its net worth deficit. If all goes as planned, Fannie Mae will get its multi-billion rescue by March 31.