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Freddie Mac, PREI®, Complete Purchase of $140 Million Mortgage Pool Consisting of Seven Senior Housing Properties From Capmark Finance Inc

Deal Allows Shelter Group to Refinance Brightview Properties

McLean, VA – Freddie Mac announced that it has purchased a $140 million pool of mortgages from Capmark Finance Inc. The $140 million, combined with a majority investment from sponsor PREI® (Prudential Real Estate Investors), enabled The Shelter Group to refinance seven Brightview senior housing properties and recapitalize. The mortgages are secured by five independent living facilities and two assisted living facilities comprising 880 units located in Rhode Island, Massachusetts, Maryland and Virginia.

"The fact that the properties are located in strong markets, coupled with PREI’s investment expertise and The Shelter Group’s seniors housing experience, made this a great transaction," said Mitchell Kiffe, Freddie Mac vice president of Production and Sales. "The seniors housing market is growing by leaps and bounds. We are proud to be a stable, reliable source of funding for it."

"The Freddie Mac program is a powerful source of financing to the seniors housing industry," said Philip Brooks, Capmark Finance senior vice president. "Structuring financing for portfolios can be complicated and have many moving parts. Freddie Mac understands our customers’ objectives and has the flexibility to work with us to structure attractive deal terms to meet their needs."

The properties were built between 1980 – 2006, and have common dining rooms and commercial kitchens, among other amenities. Most units also have full kitchens or kitchenettes.

The transaction featured a 10-year plus one-year fixed-rate mortgage with seven years of partial interest only benefiting from the Freddie Mac Fixed-to-Float option and the Freddie Mac Standard Delivery Option.

David Carliner, executive vice president for The Shelter Group, said, "Freddie Mac stood by us despite the fact that the financial markets saw more turbulence from the inception of the transaction until its closing than the industry had experienced in a very long time. The terms offered by Freddie Mac were super competitive. Capmark was a strong advocate for the deal and made sure that all of the pieces came together."

Since the introduction of the Freddie Mac Program Plus® network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for approximately 55,000 multifamily properties totaling more than $194 billion.

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-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

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