While there are growing signs that the GSEs are getting more competition from life insurance companies--particularly in low-leverage transactions--they are by no means winning such transactions on a regular basis. Hence, Mudd tells GlobeSt.com, Prudential securing funds through Fannie instead of competing for the loan for its own books. "The interest rates, in this case provided by Fannie Mae, were low enough that the owners opted for that route," he says.
The property--a 196-unit apartment building adjacent to the Pan Am Shopping Center and near the Vienna Metrorail station--was strong enough to attract interest from several different lenders, Mudd adds. "The borrowers were the second generation of the family that actually developed the property, which can make a difference. It has also been well-maintained and is well-located.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
