Berkadia Closes $40 Million Acquisition with Francis Property Management with the Help of Early Rate‑Lock
June 19, 2012
Working closely with Freddie Mac and its Central Region staff, the Los Angeles team of Berkadia Commercial Mortgage L.L.C., recently closed on a $40 million acquisition loan on San Brisas Apartments, a 312-unit property located in the energy corridor of Houston, Texas.
Early Rate-Lock Process Integral to the Deal's Completion
"It's one of the best deals we've ever done in terms of executing on an early rate-lock," said nine-time Freddie Mac borrower John Francis, Senior Vice President of Francis Property Management. "The market interest rate volatility made the early rate lock component of the loan process even more important than usual, and I knew based on my past experiences that Berkadia and Freddie Mac would perform."
The 10-year loan included a one-year Interest-Only term, used the early rate-lock delivery option and benefited from the features and pricing of the Freddie Mac Capital Markets Execution (CME). The loan was rate-locked in 36 hours and closed within sixty days, according to Ed Zimbler, Senior Vice President and Branch Manager of Berkadia Los Angeles.
Coordination Helps Deliver Results
"Freddie Mac did an amazing job coordinating between the national and regional offices and keeping all parties on task during rate-lock," said Zimbler. "I've been in this business for twenty-eight years and I've never seen that part of the deal run so efficiently."
Strong Relationships Key to this Transaction and Ongoing Business
Francis Property Management has now financed over $160 million encompassing over 2,000 units across nine properties, working exclusively through Ed Zimbler, Berkadia Commercial Mortgage and Freddie Mac. "Other lenders want my business but Freddie Mac continues to provide competitive rates, a better rate lock process and a trustworthy relationship that cannot be underestimated," says Francis.
Berkadia's familiarity with the buyer, knowledge of quality assets in the region and effort to proactively inspect the property contributed significantly to securing the deal, according to Kelli Carhart, Associate Director of Multifamily Sourcing at Freddie Mac. "Ed, Eileen McCormick and the rest of the Berkadia team did an incredible job defining all of the parameters upfront and supplying accurate documentation on time," says Carhart. When there is such a high-level of trust between the mortgage banker and our team, it's much easier to secure the deal."
James McArthur, Associate Director of Underwriting, and his team at Freddie Mac also contributed in prioritizing the deal and ensuring strong underwriting standards that mitigated risk both pre- and post-rate lock, according to Carhart. "Jim and his team deserve most of the credit in prioritizing this deal and making it happen," said Carhart.
"John Francis has an impeccable reputation for closing and doing what he says he will do," says Zimbler. "The mutual respect John Francis, Peter Giles, John Cannon and I have for each other goes a long way in closing such a quality deal."