Bailey Real Estate Closes on Largest Freddie Mac Small Balance Loan Deal in Southeast

WASHINGTON, DC—Locally-based Bailey Real Estate Holdings, LLC has closed on a $35-million Freddie Mac Small Balance Loan package for a portfolio of 47 multifamily properties here.

CBRE Capital Markets secured the Freddie Mac financing for the properties that feature a total of 359 units located in the growing Southeast and Northeast sections of Washington, DC. Freddie Mac officials say that the deal is the largest ever in the GSE’s Southeast region for its Small Balance Loan program.

Colin Loehr of CBRE Capital Market’s Debt and Structured Finance team, based in the Baltimore office, arranged the financing deal that included individual loan values ranging from $4.35 million up to $6.75 million.

“I am very excited to have had the opportunity to work on these deals that preserve affordable housing in the Washington, D.C. market, where there is such a critical shortage,” says CBRE’s Loehr.

CBRE assisted Bailey Real Estate Holdings with refinancing multiple properties simultaneously with long-term non-recourse debt. The six loans included 10-year terms, fixed rates, 30-year amortization and 75% LTV.

“This transaction is a prime example of Freddie Mac’s commitment to addressing America’s affordable housing shortage,” says Annie Gong of Freddie Mac’s Small Balance Loans production and sales team. “More than 90% of these units are affordable to very-low-income tenants who earn less than half of area median income in the high-cost D.C. market.”

She adds, “We faced multiple hurdles in bringing this complex transaction across the finish line, and executed on a short timetable during the busiest time in Freddie Mac SBL’s history.”

Freddie Mac’s Small Balance Loan program provides a competitive option for loans between $1 million and $7.5 million on multifamily properties of five units or more. The flexible loan offering provides financing solutions with both hybrid ARM and fixed-rate products.