Orlando, FL – November 21, 2011 – (RealEstateRama) — Financing of multifamily properties through Freddie Mac’s Capital Markets Execution (CME) loan program remains strong throughout the U.S. as reflected by the recent transactions from CBRE’s Orlando, Florida office. In less than two months, CBRE Senior Vice President Glenn Housman, MAI, secured a total of $52.57 million in permanent financing for four separate properties, on behalf of three different investment groups. All loans originated through Freddie Mac.
“Freddie Mac continues to meet the needs of the multifamily industry by providing competitive financing options for multifamily loans nationwide,” says Housman, who has originated over a billion dollars for Freddie Mac’s multifamily programs and is a top government-sponsored enterprise (GSE) producer for CBRE.
For the largest of the financing transactions, a $23.4 million refinance completed on November 8, CBRE secured a 7-year fixed rate with interest in the low 4% range, an LTV of approximately 65% and a DSCR of 1.68x for Arbor View 2 3 & 4, a 472-unit Class A apartment community located near Biloxi, MS. Housman secured the financing on behalf of the borrower, Arbor Properties Inc. a Tallahassee-based firm that currently owns and manages approximately 2,838 luxury multifamily units in Alabama, Florida and Mississippi.
Housman also secured financing on behalf of Arbor Properties for Arbor Place 2, a 328-unit community also near Biloxi, MS. The $6.47 million non-recourse floating rate loan was arranged via Freddie Mac through its Portfolio capped ARM program to take out existing bank construction financing on 88 units, which was phase II of an existing complex also financed by Housman via Freddie Mac. Terms of the loan provided were a 5-year variable rate to be coterminous with PH 1, interest in the high 3% range, an LTV of approximately 75% and a DSCR of 1.65x.
The second largest financing transaction was an $18.4 million non-recourse loan on behalf of Abbey Residential for The Abbey at Medical Center, a 340-unit Class B multifamily property located in San Antonio, TX. The loan represented the take out of existing bank debt and was arranged under Freddie Mac’s fixed CME program. Financing terms included 7-year fixed rate at approximately 4%, a 30-year amortization, 80% LTV and a DSC ratio of 1.35x. Frank Barefield, President of Abbey Residential said of Housman, “Glenn always goes to great lengths to make sure we get the best financing terms possible. We greatly value his service and extraordinary due diligence and proactive approach that we know is so critical to smooth closings with no surprises on higher leverage GSE deals today.”
In the remaining transaction completed October 25, Freddie Mac provided a $4.3 million 7-year floating rate loan through its CME program, to Nunnelley Properties for Homewood Townhomes, a 124-unit townhouse community located in Birmingham, AL. Housman secured the refinance of existing Freddie Mac debt that he also originated in 2004.
Both Abbey Residential and Nunnelley Properties are based in Birmingham, AL. Abbey owns properties in Texas, Alabama, South Carolina and Florida and has performed redevelopment and repositioning on thousands of apartments, as well as ground up construction of Class A properties. Nunnelley is a smaller group with approximately 600-units owned and managed in Alabama.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.
Contact:
Elizabeth Cross
Marketing Director, FL
305.428.6373
elizabeth.cross (at) cbre (dot) com
Lauren Crawford
Communications & Media Manager, FL
813.273.8482
lauren.crawford (at) cbre (dot) com
