Revolving Credit Facility Helps Build Customer Relationships
Adds to Area's Workforce Housing
In today’s competitive multifamily market, strong customer relationships are more important than ever. Building those relationships often requires a product that can truly differentiate itself in the marketplace, whether your customer is a Seller/Servicer or a borrower. Establishing the relationship early on, when the business is young and growing, is a plus, as was the case with ROCO, one of our borrower sponsors.
Founded in 2012, ROCO is a relatively new, privately-owned real estate investment firm in Bloomfield Hills, Michigan. The company set up a Freddie Mac Multifamily revolving credit facility through Hunt Mortgage Group allowing them to grow through off-market, conventional multifamily acquisitions — specializing in the development of workforce housing in their area.
— Kevin Roach, Director of Debt Financing, ROCO Real Estate
How Freddie Mac’s Revolving Credit Facility Works for ROCO
- It provides a predictable source of capital and certainty of execution enabling ROCO to win new business in a highly-competitive acquisitions market.
- The facility closed (or was established) in February 2016. The facility is currently expanding by more than 50 percent and is anticipated to double by the end of the year.
- With this facility, ROCO has the ability to use either a Freddie Mac capital markets’ execution loan, or a small balance loan, as an attractive takeout once the facility stabilizes.
“Working with Freddie Mac, we were able to structure a highly customizable credit facility with benefits such as flexibility of when and how capital is deployed, a streamlined underwriting process, standardized loan documents, interest-only payments and an extremely competitive interest rate. These components were an ideal solution for our borrower’s business plan and we were extremely happy to deliver this unique execution.”
— Josh Messier, Director, Hunt Mortgage Group
Works for Many Other Borrowers
As a firm in portfolio acquisition mode, ROCO enjoys the certainty of execution, flexibility and efficiency that Freddie Mac delivers. Having the funds committed up front through the facility, ROCO can easily execute their acquisition strategy. Hunt Mortgage Group continues to solidify their relationship with ROCO as they work together on each debt request. Overall, the relationship has proven to enhance ROCO’s customer experience and develop their loyalty toward both Hunt Mortgage Group and Freddie Mac.
— Bill Hyman, Senior Managing Director, Hunt Mortgage Group
Other borrowers with different financing needs are benefitting from our flexible revolving credit facility product. Find more information, including terms, on our website and from your Freddie Mac representative.