HFF Arranges $45M Freddie Mac Loan for Denver Apartment Complex

The Parc at Cherry Creek.

HFF secured a $45 million fixed-rate loan through Freddie Mac’s Capital Markets Execution program to refinance a 408-unit, garden-style apartment community in Denver, Commercial Observer has learned.

The 10-year securitized loan on the Parc at Cherry Creek replaces existing debt that carries a remaining term of three years and no interest-only period, according to an HFF spokesperson. Read More


The Millennial Effect

(Lorenzo Gritti)

There’s more to them than BuzzFeed, Lena Dunham and unemployment. The ascendant generation—those oft referred to as millennials—is affecting our national housing market, possibly permanently.

Battered by the financial crisis, environmentally conscious and not willing to commit to long-term investment in a property, millennials—defined by the U.S. Census Bureau as Americans between the ages of 18 to 34—are eschewing home ownership, in a departure from previous generations. Read More


Corigin Refinances NYU Student Dorm

80 Lafayette Street.

Prudential Mortgage Capital Company originated a $161.3 million Freddie Mac loan to refinance a New York University dormitory in Tribeca owned by Corigin Real Estate Group, according to the borrower and lender.

The 10-year deal, which closed on Feb. 2, contains a $51.3 million gap mortgage, according to the loan documents. The new debt replaces a $110 million mortgage securitized by Bank of America in 2005. Read More

Mortgage Observer

TF Cornerstone Closes Two Agency Loans Totaling $365M

95 Horatio Street.

The Singer & Bassuk Organization advised TF Cornerstone in the arrangement of two permanent agency loans totaling $365 million for the New York developer’s rental apartment buildings at 95 Horatio Street in the Meatpacking District and 4610 Center Boulevard in Long Island City, Mortgage Observer has first learned.

TF Cornerstone secured a $165 million Freddie Mac loan through Capital One for its Horatio Street property, said Jeremy Shell, the company’s head of finance and acquisitions, and Andrew Singer, chairman and chief executive officer of Singer & Bassuk. Read More

Mortgage Observer

Q&A: Mark McCool, President of Berkadia Commercial Real Estate Services

Mark McCool.

Mr. McCool leads the servicing division of Berkadia Commercial Real Estate Services, a company owned by Berkshire Hathaway and Leucadia National Corp with 75 offices nationally. The company services a portfolio of properties in the U.S., Canada and Mexico valued at over $245.3 billion and is the third-largest multifamily servicer nationally. Mr. McCool recently sat down with Mortgage Observer in Berkadia’s Midtown Manhattan office, where he told us about the future of Fannie Mae and Freddie Mac, the market for debt on distressed properties and the company’s operations in Hyderabad, India. Read More

Mortgage Observer

Edgewater N.J. Complex Scores $85M Refi From Freddie Mac

The View at Edgewater

Berkadia Commercial Mortgage arranged an $85 million revolving credit facility through Freddie Mac for an Edgewater, N.J., mixed-use complex, Mortgage Observer has exclusively learned.

The five-year loan has a floating rate based on Libor, currently ticking in at 2.05 percent, and a 75 percent loan-to-value ratio. The proceeds will be used to refinance a bridge loan, also provided by Berkadia, prior to stabilization. The property, called The View at Edgewater Harbor, was built in 2012, according to Read More


M&T Refinances 250 Mercer Street Through Freddie Mac Loan

250 Mercer Street

M&T Realty Capital Corp., the commercial mortgage banking subsidiary of M&T Bank, recently closed a $34 million Freddie Mac loan to refinance a 256-unit co-op building at 250 Mercer Street in NoHo, a spokesperson for the bank told Mortgage Observer. The borrower is listed in public records as Mercer Square Owners Corp.

Proceeds from the ten-year loan will go to capital improvements on the 16-story pre-war building and allow the shareholders to lock into a low fixed interest rate, according to the lender. Read More

Mortgage Observer

A World Without Fannie and Freddie?

Fannie Mae Headquarters.

A proposed Senate bill that seeks to wind down Fannie Mae and Freddie Mac over the next five years, revealed last month, would preserve their multifamily lending businesses under a new entity and maintain a government guarantee for the multifamily lending market, commercial lenders and brokers told Mortgage Observer.

The bill, announced by Senators Tim Johnson and Mike Crapo on March 11, focuses on the dissolution of the firms’ single-family residential mortgage business, a market that the government-sponsored entities continue to dominate six years after the beginning of the financial crisis. It also creates a provision that would spin off the companies’ multifamily businesses and establish new independent businesses within a year of the bill’s passage. Read More

Mortgage Observer

Beech Street Capital’s Grace Huebscher Finds Opportunity in Acquisition

Grace Huebscher (Photo by Susana Raab)

During last year’s Mortgage Bankers Association commercial real estate finance (CREF) conference, Grace Huebscher, president of the leading multifamily lender Beech Street Capital, found clarity on a topic she had been considering for some time—that staying ahead of the competition would require the support of a larger institutional partner. Capital One, Beech Street’s primary bank since 2010, had been on her radar, along with other top players in the finance arena. But prior to the annual event, Ms. Huebscher had felt that time was on her side.

A deeper sense of urgency set in as she listened to her peers speak about the challenges and changes ahead, from agency reductions to the return of the banking industry. That solidified a thought she and her partners had been entertaining for more than a year. Read More

Mortgage Observer

Fannie and Freddie Phase Out ‘Shocking,’ Real Estate Experts Say

Fannie Mae Headquarters.

Despite their surprisingly rapid recovery five years after being placed into government conservatorship, Fannie Mae and Freddie Mac will be dissolved, if bi-partisan legislation announced today by the Senate banking committee eventually passes.

Under the bill, private capital would have to take the first 10 percent of all mortgage losses, effectively removing much of the firm federal backing that mortgage-backed securities repackaged by Fannie and Freddie have enjoyed. Read More