New York, NY (August 16, 2018) – Greystone, a commercial real estate lending, investment, and advisory company, announced it has provided a $4.56 million Freddie Mac Targeted Affordable Housing loan for the acquisition of Alcazar Apartments in Kansas City, Missouri. The financing was originated by Keith Hires, managing director in Greystone’s Atlanta office.

Alcazar Apartments consists of a seven-story midrise building and two additional four-story midrise buildings, with a total of 142 units, 75 of which are designated affordable housing units. The residences range in size from studios to one- and two-bedroom units and include access to on-site parking and a fitness center.  

The loan was closed via Freddie Mac’s Targeted Affordable Housing platform, which provides financing for properties with rent-restricted units that are affordable to families with low, very-low and moderate incomes.

“At this point in the market where there is a severe lack of affordable and workforce housing being created, much less being maintained and preserved, we are pleased to provide the financing to ensure Alcazar provides a safe and affordable home for hundreds of residents for years to come,” said Mr. Hires. “Freddie Mac’s Targeted Affordable Housing platform provides an ideal financing avenue for owners of and investors in affordable housing, and we applaud their commitment to this housing segment.”

WASHINGTON, D.C. – August 7, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces acquisition financing for Northlake Townhomes, a 76-unit, garden-style apartment property in North Charleston, South Carolina.

HFF worked on behalf of the borrower, Brick Lane, to secure the $5.25 million, 10-year, fixed-rate acquisition loan through Freddie Mac’s CME Program.  The securitized loan will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.  Freddie Mac has provided financing for 786 units with Brick Lane during the last two years.

Northlake Townhomes consists of 17 buildings encompassing spacious two- and three-bedroom units.  Located at 4135 Bonaparte Drive, the property is within one mile of Interstate 526, which provides access to major employers in the greater Charleston MSA.  Northlake Townhomes is also near the Charleston International Airport, Tanger Outlets and Joint Base Charleston.  The property is 98.68 percent occupied.

The HFF debt placement team representing the borrower included Jamie Leachman and Nicole Brickhouse.

DENVER, CO – July 31, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces $7.74 million in financing for two Colorado Springs, Colorado, apartment communities – Alvarado Place and Solar Vista.

The HFF team worked on behalf of Radford Investment Properties to secure two separate fixed-rate loans through the Freddie Mac Small Balance Loan program.  Proceeds from the loan for Alvarado Place refinanced a floating-rate loan the HFF team sourced for the borrower in 2016 and proceeds from the loan for Solar Vista were used to acquire the property.

Alvarado Place is positioned near major Colorado Springs thoroughfares, including Fountain Boulevard, Powers Boulevard and Interstate 25.  Situated at 1465 Alvarado Drive, the community shares a property line with the U.S. Post Office and is directly east of the Leon Young Sports Complex.  The property comprises 99 studio, one- and two-bedroom units averaging 519 square feet each housed within five, two-story residential buildings. 

Solar Vista is a 28-unit property located at 1535 S. 8th Street in Colorado Springs, approximately five miles west of Alvarado Place.  The community is one mile from Interstate 25 and just north of the acclaimed Broadmoor luxury resort and Ivy Wild redevelopment area.  Units include a mix of one- and two-bedroom layouts averaging 563 square feet within a three-story building.

The HFF debt placement team representing the borrower consisted of director Brock Yaffe.

“HFF continues to help Radford meet its financing needs at the highest level,” said a representative from Radford Investment Properties.  “They provide excellent customer service and deliver loans on time and within the agreed upon terms.  Having financing security allows Radford to concentrate on deal-specific parameters while under contract to make the best investment decisions for its clients.”

Holliday Fenoglio Fowler, L.P. (HFF) announces financing totaling $172.845 million for five apartment communities comprising 1,534 units in the Denver and Houston metropolitan areas.

The HFF team worked on behalf of the borrower, Advenir, Inc., to secure the seven-year, fixed-rate loans in five separate transactions through Freddie Mac’s CME Program.  The securitized loans were used to refinance existing floating-rate debt on the properties, and will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.  HFF worked with the borrower in a strategy to mitigate interest-rate risk amid the current rising rate environment.  The average rate across the five fixed-rate loans is 4.27 percent with rates spanning from 4.21 to 4.34 percent.  The average rate at the retirement of the LIBOR-based, floating-rate loans was 4.47 percent with rates spanning from 4.26 to 4.86 percent.  The fixed-rate conversions took the ongoing LIBOR adjustment risk off the table and ultimately provided the borrower with a reduction in the all-in rate for each property with additional interest-only amortization.

“We have found this to be an opportunistic time to lock interest rates with fixed-rate loans for stable properties that exhibit a long-term ownership horizon,” said Stephen L. Vecchitto, managing director and principal of Advenir, Inc.  “These properties provide substantial current cash flow and continued market appreciation.  While the original floating-rate debt allowed for the execution of the value-add business plan upon acquisition, the new fixed-rate debt allows for interest rate stability and a longer hold timeframe for the asset.”

The properties in the portfolio are: Advenir at Eagle Creek, a 258-unit property located at 10373 North Sam Houston Parkway East in Humble, Texas; Advenir at Woodbridge Reserve, a 288-unit property located at 15000 W. Airport Boulevard in Sugar Land, Texas; Advenir at Cherry Creek North, a 345-unit property located at 1090 S. Parker Road in Denver, Colorado; Advenir at Cherry Creek South, a 292-unit property located at 1211 S. Quebec Way in Denver, Colorado; and Advenir at Del Arte, a 351-unit property located at 151 S. Joliet Circle in Aurora, Colorado.  The portfolio is 94.57 percent occupied overall.

The HFF team representing the borrower included senior managing director Eric Tupler and managing directors Josh Simon and Cortney Cole.

New research released today by Freddie Mac indicates that affordability and changing attitudes towards renting are playing a significant role in the growing demand for rental housing. The study finds that an increasing number of America's renters are satisfied with their living situation and consider it the most affordable option for the foreseeable future. More renters believe this despite their view that housing prices -- both to purchase and rent -- continue to rise and supply continues to tighten.

According to the latest Freddie Mac renter survey, a large number of renters view renting as an option that fits their lifestyle, and a strategic choice at many life stages. While sentiments differ among urban, suburban and rural households, nationally those who believe that renting is more affordable has increased to 76 percent from 68 percent since Freddie Mac's last renter survey in March, 2017.

"Our rental survey confirms what we're seeing in the market -- that a growing number of individuals across demographic groups view renting as more affordable and better suited to their current economic situation," said David Brickman, executive vice president and head of Freddie Mac Multifamily. "These changing perceptions, combined with rising rents and tightening supply of affordable housing, are likely to fuel continued multifamily market growth in the years ahead. More importantly, it makes our role -- providing financing to meet the nation's growing workforce housing need -- even more important."

Changing Perceptions Towards Renting
Conducted by Harris Poll, the survey finds an increasing number of renters view renting as a good choice for them, increasing in August to 57 percent compared to 52 percent in March, 2017. Over half of renters -- 58 percent -- believe that "renting fits my current lifestyle". Of these respondents, 63 percent of Young Millennials ages 21-27 and Baby Boomers ages 53-71 feel the statement reflects their views. Moreover, 55 percent see renting as a strategic choice at many life stages, with 45 percent of Younger Millennials, 51 percent of Older Millennials (aged 28-37), 56 percent of Generation X (aged 38-52), and 68 percent of Boomers sharing those views.

A Majority View Renting as the Far More Affordable Option
Bolstering these perceptions are evolving views on affordability. While more than seven out of 10 renters view renting as more affordable than owning generally, perceptions of renting as more affordable have increased across all generations as well. In fact, since September of 2016, the view that renting is more affordable has increased by more than 10 percentage points among Millennials (66 percent to 76 percent), Generation X (56 percent to 75 percent) and Baby Boomers (71 percent to 82 percent).

Simultaneously, most renters believe all housing is becoming costlier, with 57 percent believing home prices have increased, and 56 percent viewing rents as on the rise. The research finds that renters living in urban areas are feeling the cost increases most significantly, with 6 out of 10 renters living in urban areas saying housing prices are more expensive compared to last year. Further, most renters see supply tightening, with 52 percent citing the supply of available homes to purchase -- and 63 percent viewing available rental options -- as about the same or lower than last year. The rental shortage is particularly pronounced among rural renters with a third (33 percent) believing there are fewer homes to rent where they live.

While owning a home continues to remain an aspiration for many, the financial realities of cost and tight inventory make renting the more practical option. An increasing number of renters believe it will be more affordable to rent than to own in the future. The number who view renting as more affordable in the next 12 months increased to 25 percent from 20 percent in March, 2017, while the number who believe buying a home would become more affordable decreased to 15 percent from 18 percent over the same period.

Views on the Rental Experience Remain Positive
Overall, satisfaction with the rental experience remains high and largely unchanged. Approximately 60 percent of renters express satisfaction with their overall rental experience. While 41 percent of those surveyed cited affordability as the primary driver of their renting decision, one-third (33 percent) said buying a home is just not a priority at the moment.

The survey also explored views about rental housing as it relates to working life. About half of renters (56 percent) express high satisfaction with their commute. However, a much higher percentage (76 percent) indicated they are at least somewhat willing to move to a smaller property to live closer to work. About 41 percent of employed renters find it difficult to find affordable housing close to where they work.

Conducted in March for Freddie Mac by the Harris Poll, the findings are based on responses from 1,342 renters in urban, suburban, and rural markets, including Millennials (aged 21-37), Gen-X'ers (38-52) and Baby Boomers (53-71).

Underscoring the growing popularity and demand for Freddie Mac’s Small Balance Loan offering, it was announced today that the platform has achieved, for the first time since the SBL offering’s inception in late 2014, $1 billion in funded loans in under a year from a single lender, Greystone.

Freddie Mac’s Small Balance Loan offering provides a competitive option for loans between $1 million and $6 million on multifamily properties comprising between 5 and 50 units. The flexible loan offering provides six different hybrid ARM and fixed-rate financing solutions with 30-year amortization and up to 80% LTV in certain markets.

Since its launch in 2014, the SBL offering has funded a total of $10.5 billion and over 4,000 loans. Illustrating its commitment to the Freddie Mac SBL lending platform since the offering’s launch, Greystone was the first lender to close an SBL loan in 2014, a $1.9 million loan on a 6-unit property in Newport Beach, CA.   

"Greystone has been a strong partner from the inception of our Small Balance Loan Program and remains a pillar of its success," said David Brickman, executive vice president and Head of Freddie Mac Multifamily. "On behalf of Freddie Mac Multifamily, we congratulate Greystone on achieving this significant milestone, and look forward to strengthening our partnership in the months and years to come." 

“Appetite for the Freddie Mac Small Balance Loan offering is growing by leaps and bounds, and we look forward to the next billion in funded deals,” added Rick Wolf, head of Greystone’s small balance loan production.”

"Our relationship with Freddie Mac is stronger than ever, and we are honored to have reached this funding milestone with them," said Stephen Rosenberg, CEO, Greystone. "Greystone is committed to being the easiest and most delightful lender to work with by empowering our employees and investing in technology."