HOUSTON-Camden Property Trust will use a $380-million Fannie Mae credit facility to pay off property mortgages and improve liquidity. One of the REIT’s analysts labels the move as a good one for Camden and Fannie Mae, which has been trying to make inroads into multifamily REITs for years.

Houston-based Camden obtained the secured credit facility from Red Mortgage Capital Inc. of Columbus, OH. The facility includes a $175-million variable-rate loan funded with a Fannie Mae discount mortgage-backed security. It is priced at 4.2% per annum for a 10-year term, with the interest rate resetting every 90 days after Oct. 1. Camden’s capital package also includes a $205-million loan, with a 5.625% fixed-rate interest and 10-year term. There is a one-year option to extend at a variable rate.

At yesterday’s annual meeting, Camden’s CEO Richard Campo says the REIT is in good shape financially–with a zero balance on its line of credit. “We’ll use the new credit facility to pay down some of the property mortgages, which should lead to more cash on the balance sheet by year end,” he told analysts and shareholders.

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