The loans are expected to close on or before April 17,2009--although in a statement AvalonBay cautions there is noassurance that these loans will close. Interest will be fixed at5.86% per annum for ten years. Each of the loans will be IO duringthe first and second years of the loan term. After that, paymentsof principal and interest will be made based on a 30-yearamortization schedule. The remaining principal amount and anyunpaid interest due will be due at maturity on the tenthanniversary.

The company expects to use the proceeds to pay down itsunsecured credit facility and to retire unsecured debt securitiesand other maturing debt. It will also serve as working capitalrelated to development and redevelopment activity currentlyunderway and general corporate purposes.

The financing is illustrative of how the GSEs--in this caseFreddie Mac--has bolstered the asset class. "We have found thatagency finance is still available," John Christie, senior directorof Investor Relations & Research, tells GlobeSt.com. Except fora little more scrutiny on transactions, "from the standpoint ofdebt through the agencies, overall conditions are still favorablefor lending in the multifamily sector." He declined to discussspecifics about the loan transaction.