ORLANDO—Abbey Residential just secured a $112.75 million loan to refinance three multifamily assets in Texas. CBRE Capital Markets Orlando arranged the permanent, fixed-rate financing.

The fixed rate mortgages were rate locked and closed simultaneously as separate transactions. Terms were 75%–80% LTV, sub 4% fixed rates on 10-year loan terms, including three years interest only, 30-year amortization schedules, and DSC ratios in the 1.35–1.40x range.

CBRE senior vice president Glenn Housman led the team in representing long-time client Abbey Residential. The loans were arranged via Freddie Mac’s CME program.

“There really wasn’t any competition for this deal because it was a very high leverage situation,” Housman tells GlobeSt.com. “Abbey Residential has always been on the higher end of the leverage scale. Even though two of the assets were newer class A multifamily products, the life companies would not have been able to get their requested dollars out.”

Housman says life companies generally look for lower leverage multifamily deals in the 60% to 65% range. Abbey Residential needed much higher leverage to make the refi work. Considering the requested loan proceeds and the age of the assets, the CME program was really the only option.

Built in 2009, Abbey on Lake Wyndemere is a 360-unit class A institutional grade multifamily property. The multifamily asset sits on about 25 acres in The Woodlands, TX. Also built in 2009, Abbey at Grande Oaks is a 261-unit class A multifamily community in San Antonio, TX on about 10 acres. Abbey at Eldridge, located in Houston, TX, was built in 1983. The multifamily asset underwent $11.5 million in renovations in 2009.

“When we vetted it through Freddie and Fannie, Freddie Mac was the clear winner on the front end in terms of delivering the requested terms and requested dollars,” Housman says. “This firm has been with Freddie Mac for decades. They like the Freddie program and in this case Freddie was the clear winner.”