Two Los Angeles Multifamily Properties Refinanced by Greystone’s West Coast Origination Team Under Freddie Mac’s Innovative Lending Platform; New Platform Intended for Smaller Rental Properties in Effort to Support Affordable Housing
Freddie Mac (OTCQB: FMCC) Multifamily and Greystone announce the closings of the first two transactions originated by Greystone under Freddie Mac’s new Small Balance Loan offering. The more than $4.6 million in loans were to refinance smaller rental properties in Los Angeles, California.
The loans were $1,983,000 for a six-unit property and $2,639,000 for a 10-unit property, and both originated by Dale Holzer in Greystone’s Newport Beach, Calif. office.
"We are thrilled to have delivered the first loans under Freddie Mac’s new Small Balance Loan offering, and with the highly competitive terms, know that there will be many more to follow," said Rick Wolf, senior managing director and head of Greystone's Small Loan lending group.
“As one of the leading small loans lenders, we understand the needs of small property owners and the financing challenges to create and maintain more affordable housing. We look forward to expanding our offering of the Small Balance Loan product in Los Angeles and other key markets in the US.”
Nashwa Moussa, senior director of Freddie Mac Multifamily, said, "With almost a third of the multifamily debt market consisting of properties financed by small balance loans, with our participation, we want to increase the debt finance options in this sector that is a rich source of affordable rental housing. We look forward to closing more small balance loans with Greystone.”
Freddie Mac initiated the Small Balance Loan offering in October 2014 to provide long-term debt capital for the acquisition or refinance of multifamily properties with at least five units. The hybrid ARM or fixed-rate mortgage loans for these smaller properties range between $1 million and $5 million. Terms include up to 80% LTV with underwriting constraints that are highly competitive with the banks, allowing for maximum leverage with an interest-only component. The Freddie Mac Small Balance Loan offering is also non-recourse, available on a nationwide basis and have step-down prepay availability.
Greystone provides mortgage finance solutions across multiple platforms, including FHA, Fannie Mae, Freddie Mac, USDA, CMBS, bridge, mezzanine and other proprietary loan programs. In 2013, Greystone ranked #1 in combined multifamily and healthcare FHA lending; #1 in Fannie Mae Small Loans and #3 in Affordable Housing volume as a Fannie Mae DUS® lender; and as a top-5 Freddie Mac lender for seniors housing.