WASHINGTON, DC-Fannie Mae priced its fifthMultifamily DUS REMIC this week. The offering, which totaled $789million, went to market under its Guaranteed Multifamily Structuresprogram.
Fannie Mae has been tweaking this program in recent months,using new managers, for example. Thisissuance had a new twist as well—the inclusion of shorter-termcollateral in a separate tranche, KimberlyJohnson, vice president of Multifamily Capital Markets,explains to GlobeSt.com. “Having tranches with different maturitieswas very favorably received,” she says, “and it brought in newbuyers.” The deal was subscribed at two-and-a-half times andthree-times, depending on the tranche, she says.
For both tranches, the collateral was very strong, with almostidentical debt service coverage ratios and LTVs, of approximately1.61x and 68%, respectively. The new tranche, though, hadmaturities of three-and-a-half to six-and-a-half years, while thesecond tranche stuck to Fannie Mae’s traditional execution offive-year and 10-year terms.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
