Freddie Mac Shows How a Little ARM Flexing Can Close the Deal
|Name:||The Park at Kingsview|
|Loan/Deal Type:||Adjustable-Rate Mortgage|
|Number of Units:||326 units|
|Loan Amount:||$46 million|
Working in a tight time frame, Freddie Mac purchased a $46 million mortgage from NorthMarq Capital allowing the borrower, Stellar Advisors, LLC, to purchase the Park at Kingsview Village, a 326-unit apartment building located in Germantown, Md.
"We were very happy to work with NorthMarq Capital to complete this unique transaction in a compressed time-frame, taking it from receipt of a full underwriting package to commitment in one week," says Michael Meers, Freddie Mac Southeast Region managing director. "The Freddie Mac ARM product was a perfect solution given the unique nature of the deal."
The transaction was initiated as a result of a sale of the property. Two of the existing loans securing the property's two-phase development were already in the Freddie Mac portfolio, allowing the transaction to also benefit from the Freddie Mac Streamlined Acquisition Financing product using a Standard Delivery. The Freddie Mac Streamlined Acquisition Financing product is available for any property that is being purchased and is currently financed by a Freddie Mac Multifamily Mortgage.
"Never in all the years we have done agency business did we see Freddie or any other lender move so fast."
NorthMarq Capital vice president
"The purchaser initially worked with a different lender, and came to an impasse. Freddie stepped in at that time and took us from start to closing in 18 days," says NorthMarq Capital Vice President Frank Relihan. "Never in all the years we have done agency business did we see Freddie or any other lender move so fast."
"The teamwork of all parties to this transaction enabled the Stellar/Wafra joint venture to close the transaction with Northmarq and Freddie Mac in a very efficient manner," says Nancy Barton, Stellar Advisors managing partner. "Stellar and Wafra look forward to working with Freddie Mac on future transactions."
The advantages of the Freddie Mac Streamlined Acquisition Financing product include reduced documentation and lower costs (including possibly no appraisal, engineering report or environmental report and reduced property financial documentation), and speedy loan review and approval. Streamlined Acquisitions can be completed in about half the time it would take to originate most new loans. The recently enhanced Freddie Mac Adjustable-Rate Mortgage products are ideal to take advantage of lower short-term rates, with the prepayment flexibility of an adjustable-rate mortgage. We offer the option of the Freddie Mac embedded interest rate cap.
- Read More Examples of Multifamily Financing