Record-Sized Portfolio in Freddie Mac SBL Program Closes
Sabal Capital closes on a $189 million portfolio of properties in East Harlem.
NEW YORK CITY—Sabal Capital Partners, LLC, has closed the largest portfolio by loan balance in the history of Freddie Mac’s Small Balance Loan (SBL) Program. The $189 million portfolio encompasses 39 small balance debt transactions for properties located in East Harlem, NY.
“A transaction of this magnitude uniquely leverages Sabal’s expertise as a leader in large portfolio transactions,” says Pat Jackson, Sabal’s CEO. “We have engineered precision, efficiency and speed into our loan process and that has allowed us to set this, and prior, Freddie Mac records.”
The portfolio comprises both traditional multifamily as well as mixed-use assets with a dominant multifamily component. All 880 apartment units are located in East Harlem. The properties all provide low-income renters with affordable housing. Approximately 52% of the units in the portfolio will be renovated. In addition to property improvements, the loans are aimed at retiring debt from the prior lender.
“I couldn’t be prouder of the work our team put into the East Harlem portfolio, which is now the largest transaction, by loan balance, in the history of our Small Balance Loan Program,” says Steve Johnson, VP of Freddie Mac multifamily’s small balance loan business. “It’s incredibly rewarding to work with a highly experienced partner like Sabal when it comes to large and complex executions like this. We’ve developed an outstanding team and together we’ve successfully met the affordable financing needs of borrowers nationwide.”
Isaac Kassirer, president of Emerald Equity Group, notes the properties’ refinancing will help meet the strong demand for affordable housing among low-income renters in East Harlem. “Having worked with the teams at Sabal Capital Partners and Freddie Mac on this portfolio and prior notable transactions representing a large number of workforce housing properties in the New York region, we can say with confidence their process is the best in the industry,” says Kassirer.
Jack Miller, founder and principal of Platinum Capital Group, assisted in securing the debt financing for the portfolio transaction.
Sabal Capital Partners was one of Freddie Mac’s first lender partners in the agency’s Small Balance Loan Program. It offers financing for qualifying multifamily properties with loans ranging in value from $1 million to $7.5 million.