NEW YORK CITY-A fund managed by UBS Global Asset Management has secured a combined $450 million in financing from Fannie Mae and Freddie Mac. CBRE Capital Markets' Debt & Equity Finance group arranged the loans to refinance 11 multifamily assets located in five states, mainly California.
Fannie accounted for $231.7 million of the financing, while Freddie provided the remaining $218.2 million. The seven-year and 10-year, fixed-rate, interest-only loans carry a weighted average rate of 3.01%. They are not cross-collateralized or cross-defaulted, according to a release.
“This transaction was an enormous undertaking, but the CBRE teams, Freddie Mac and Fannie Mae—with the help of great information and cooperation from the sponsor—worked diligently to help structure, underwrite and ultimately close 11 loans within the timeframe required by the borrower,” Michael Riccio, Hartford, CT-based senior managing director of CBRE Debt & Equity Finance, says in a release.
Riccio led a multi-state CBRE team in securing the financing for the 11 separate entities within the fund. He adds that both Fannie and Freddie able to structure “some unique features into the loans” that will afford the UBS-managed fund “maximum flexibility” in managing the portfolio.
The portfolio encompasses a total of 3,369 units. The individual properties are located in Dublin, Orange, San Ramon, San Diego and Vacaville, CA; Denver; Chicago; North Bergen and Wayne, NJ; and Portland, OR.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.