DALLAS-AMLI Residential Properties has obtained a $23.1 million loan from Freddie Mac to refinance an existing agency loan for AMLI at Bryan Place, a 420-unit, class A apartment property near downtown.

The seven-year, adjustable-rate loan was placed by Mona Carlton, a senior managing director with HFF’s local office, and Luke Vanderpoel, an analyst with HFF. The loan has a 65% loan-to-value, according to Vanderpoel. It is based off of LIBOR, and the spread is undisclosed.

“AMLI at Bryan Place is excellent real estate with a strong sponsor,” Carlton says, adding that both Fannie Mae and Freddie Mac quoted the deal. However, Freddie Mac was able to be “a little more aggressive on pricing” because it held the existing, maturing loan on the property.

Carlton and Vanderpoel worked for about five months to refinance the property, and only presented the deal to Fannie Mae and Freddie Mac. “We knew the property was agency quality, and the agencies had the best rates at the time,” Carlton says.

Although most institutional borrowers like AMLI Residential Properties usually choose fixed-rate financing, Carlton tells GlobeSt. that many borrowers today are choosing capped ARMs because the pricing is aggressive. Caps set a maximum interest rate for ARMs, and both agencies require caps if a borrower chooses an ARM.   

HFF will service the loan through their Freddie Mac Program Plus