MCLEAN, VA—Freddie Mac has made the first two loans under its Small Balance Loan offering that it first unveiled in October.
The transactions were originated by Dale Holzer in Greystone's Newport Beach, CA, office to refinance smaller rental properties in Los Angeles.
The loans were $1.9 million for a six-unit property and $2.6 million for a 10-unit property
The Small Balance Loan program is meant to provide long-term debt capital for borrowers seeking to acquire or refinance multifamily properties with at least five units. The hybrid ARM or fixed-rate mortgage loans for these smaller properties range between $1 million and $5 million. Terms include up to 80% LTV, allowing for maximum leverage with an interest-only component.
The Freddie Mac Small Balance Loan offering is also non-recourse and the loans have step-down prepay availability. Besides Greystone, other lenders in the program include Arbor Commercial Mortgage and Hunt Mortgage Group.
Freddie Mac will eventually securitize these loans
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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.
