Houston Development Taps Freddie Mac Money for Repositioning
In these unprecedented times, both Freddie Mac and Fannie Mae have been an unwavering source of capital, and are still actively lending and closing on transactions at aggressive rates below 3%.
HOUSTON—Even during the downturn, lending continues for well-located multifamily. In a recent example, loan proceeds from acquisition financing will be used to undertake a full property repositioning for the 211-unit Sunswept Townhomes.
Berkadia originated and Freddie Mac purchased the 10-year floating-rate loan with five years interest only. Senior managing director Mitch Sinberg of Berkadia’s Boca Raton, FL office and managing director Brad Williamson of Berkadia’s Miami office secured the loan on behalf of One Real Estate Investment, a real estate investment and asset management firm based in Miami.
“Due to the sponsor’s strong track record, we were able to secure a floating rate loan at an aggressive rate below 3%,” said Williamson.
Built in 1982, Sunswept Townhomes is located at 12247 Sunset Meadow Lane and features one-, two- and three-bedroom floor plans ranging from 745 square feet to 1,257 square feet. Within Sam Houston Tollway–Houston’s middle loop–the community is located near several employment and entertainment centers. Downtown Houston is less than 30 minutes away, offering access to Texas Southern University and the Toyota Center. The Texas Medical Center is approximately 20 minutes away and NRG Stadium is nearly adjacent.
“In these unprecedented times, both agencies, Freddie Mac and Fannie Mae, have been an unwavering source of capital and are still actively lending and closing on transactions,” Williamson tells GlobeSt.com.
A global recession has started and the US is expected to endure a recession with GDP declines in the first and second quarter, according to a CBRE report. Its research portends that the US economy will stabilize in the third quarter, start to recover in the fourth quarter and grow at a rate in excess of 5% in 2021 due to pent-up demand and major government stimulus.
The US commercial real estate recovery will trail the economic rebound and span 12 to 30 months, depending on the sector. Faster recovering categories such as industrial and logistics will recover within 12 months, and multifamily within 18. Facing a longer recovery of up to 30 months are the retail, food and beverage, and hotel sectors.
On a metro basis, markets dependent on tourism and the energy industry such as Las Vegas and Houston respectively will be hardest hit and will take longer to recover. Some with high concentrations of government, defense and tech jobs such as Washington, DC are more stable, says CBRE.