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

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.