Southern Management Closes $1.5B Refi

WASHINGTON, DC-Southern Management Corp., the largest privately owned residential property management company in the Mid-Atlantic region, recently refinanced a $1.5 billion portfolio with Freddie Mac. The 69 properties in the portfolio are located in Maryland and Virginia. SVP John Reed of Berkadia Commercial Mortgage facilitated the transaction.

This transaction, he tells GlobeSt.com, is also expected to be Freddie Mac’s largest multifamily deal eligible for securitization to-date through its Capital Markets Execution program. The original transaction had been backed from Freddie Mac’s loan portfolio. For that reason, the refinance was tricky, Reed says. “Freddie Mac’s underwriting and due diligence requirements for securitization are a lot more involved than its underwriting and due diligence for portfolio financing.” Also, he adds, “doing anything 69 times is not especially easy.”