MuniMae officials have announced they put together $173.5 million in secondary market transactions. Of that total, it directly invested $23.5 million in tax-exempt bonds, $6 million of debt and equity on its own accounts, and originated $21 million in taxable loans for others. In addition, the firm originated $47.2 million in construction loans, $45 million in permanent loans and equity syndications totaling $43.7 million.

MuniMae's secondary market investments included structuring the financing of Capreit V, a $150-million portfolio of multifamily housing development bonds. Capreit V consists of 12 apartment communities with a total of 2,942 units. Six properties are located in Florida, two are in Indiana, two in South Carolina and the remaining two are in Iowa and Georgia. MuniMae provided $6 million of debt and equity financing out of its own account.

Through its subsidiary, the Midland Companies, MuniMae originated a $21-million taxable loan for pension fund clients. In addition, MuniMae provided the collateral to secure a put option to cover Merrill Lynch's $18.5-million investment in a conventional loan. MuniMae received total origination fees of $640,000, and will receive a preferred return on its equity investment plus 35% of the residual net income generated by the real estate assets.

The organization also acquired two bonds totaling $10.7 million for Hunter's Glenn in Florida and $10.7 million for Buchanan Bay in Ohio, collectively secured by 611 units. As part of the deal, it also made a $2 million taxable loan for the Hunter's Glenn property and then sold the loan to the Community Development Trust along with the bond acquisition. Dynex Capital was a partner in the transaction.

Other first-quarter investments included seven transactions with combined construction and permanent debt and equity investments totaling $59.1 million. Of the remaining transactions, 14 were for equity only, totaling $27.5 million; one was a Fannie Mae permanent loan conversion for $2.8 million; two were permanent loan take-outs of construction loans, totaling $42.8 million; and one was a construction loan for $3.7 million.

MuniMae and its subsidiaries originate, service and asset manage investments in multifamily housing debt and equity totaling $2.5 billion.

Instant Insights /

MuniMae Structures $309 Mil in Multifamily Financing

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