FREDDIE MAC ANNOUNCES HIGH LEVERAGE LOAN DEAL

McLean, VA – Freddie Mac today announced it recently completed a $14.1 million transaction with Deutsche Bank Berkshire Mortgage, using Freddie Mac's High-Leverage Loan product. The financing consists of a $12.2 million Freddie Mac first mortgage and a $1.9 million CWCapital LLC second mortgage that were purchased simultaneously.  The mortgages are secured by the Remington Apartments, which are located outside of Cleveland. 

"We used Freddie Mac's High-Leverage Loan product to go lower on the debt service coverage to get additional proceeds for the borrower. Since Remington was the second High-Leverage Loan we did with this borrower and Freddie Mac, we were able to use the same loan document modifications from prior Freddie Mac transactions with this borrower for the CWCapital piece of the loan. This made the closing process relatively seamless, which was a big positive for the borrower. We definitely see using High-Leverage again," said Bob Douglas, assistant vice president, Deutsche Bank Berkshire Mortgage.

"Closing one High-Leverage deal with the borrower and Deutsche Bank Berkshire Mortgage, and soon afterwards getting the opportunity to finance this Cleveland acquisition using a similar structure, is encouraging for the product. We are pleased the transaction terms and process are appealing to the market, whether it helps to win repeat business or bring in new customers," said Richard Martinez, Freddie Mac Central Region managing director.  "High-Leverage is proving successful at enabling us to be more aggressive on proceeds at a competitive price."

The property, built in 1991, is comprised of 283 one- and two-bedroom garden style apartments.  Units include patios or balconies, microwaves, dishwashers and washer/dryers, and some fireplaces.  A swimming pool, Jacuzzi, clubhouse, fitness room, racquetball court, heated garages and tanning beds are also available for use by residents.

Since the introduction of the Freddie Mac Program Plus network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for over 46,000 multifamily properties totaling more than $141 billion.

Photo available upon request.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough securities and debt instruments in the capital markets.  Over the years, Freddie Mac has made home possible for one in six homebuyers and more than four million renters. 

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