The original collateral consists of 22 multifamily properties spread across multiple markets in Texas and Florida, as well as Denver. Most of the properties are in Texas, Reilly Mortgage vice president Brian Manion tells GlobeSt.com.

Reilly Mortgage teamed with Freddie Mac to create a credit facility based on Freddie Mac reference bills, which have historically traded at about 20 basis points below LIBOR. The spread has ranged from 5 basis points to 30 basis points below LIBOR, he adds. Regardless, pegging the credit revolver to the highly liquid Freddie Mac reference bills allows TVO Southwest Partners to borrow at rates in the area of 2.25%, Manion explains.

"We wanted to structure a deal that would significantly lower their borrowing costs, and by tying this transaction to Freddie's reference bills, the lower financing costs were passed along to TVO," Manion says.

That pleases TVO, but so did timeliness and efficiency of the team formed by Reilly Mortgage and Freddie Mac, says Daniel J. Gumbiner, chief operation officer and chief financial officer of TVO Realty Partners, parent company of the borrower.

"A transaction of this size with so many assets takes a total team effort to complete," Gumbiner says.