Barings Multifamily Capital has closed a $10,906,284 refinance loan on Flats on 4^th and a $33,576,000 acquisition loan on The Modern at Providence. Built in 2017, Flats on 4^th is an 86-unit mid-rise apartment complex in downtown Birmingham, Ala. Barings Multifamily Capital refinanced the borrower's construction loan. The loan has a 10-year term with 30-year amortization. The Modern at Providence is a 300-unit garden style apartment property built in 2017 and is located in Huntsville, Ala. The acquisition loan has a 10-year term with 30-year amortization and first five years of interest only.

Walker & Dunlop Provide Bridge Loan to Multifamily Portfolio

Walker & Dunlop provided $93,455,000 in short-term financing through its bridge lending program for the acquisition of a four-property multifamily portfolio located in Westerville and Columbus. Completed on behalf of Oro Capital Advisors, the three-year, nonrecourse loan provides planned capital expenditure funding for property rehabilitation and repositioning. The funding provided by Walker allowed Oro Capital Advisors to acquire the multifamily portfolio on an expedited timeline with flexible prepayment options and at a competitive rate.

Fannie Mae has completed its first multi-tranche Credit Insurance Risk Transfer transaction covering a pool of approximately $10.9 billion of existing multifamily loans in the company’s portfolio. This transaction, CIRT 2018-M02, is the fourth one designed to increase the role of private capital in the multifamily mortgage market.

“We are happy to introduce our first tranched multifamily credit risk sharing transaction, which allowed us to expand reinsurer and insurer participation and realize favorable blended pricing on the tiered risk sharing,” said Jonathan Gross, vice president of multifamily for Fannie Mae. “This new transaction transferred $273 million of risk to nine reinsurers and insurers. This program, aimed at sharing risk with diversified reinsurer and insurer counterparties specifically, supplements our delegated underwriting and servicing program where originating lenders routinely share approximately one-third of the credit risk on our multifamily loans. Our multifamily CIRT program helps us mitigate risk on the other two-thirds of credit risk, benefitting U.S. taxpayers. We plan to return to the market next year with additional multifamily CIRT transactions.”

The covered loan pool for the transaction consists of 1,085 loans, secured by 1,091 multifamily properties, acquired by Fannie Mae from February 2018 through June 2018. Each loan has an unpaid principal balance of $30 million or less.

The transaction became effective Oct.1, 2018, Fannie Mae will retain risk on the first 150 basis points of losses. The A tranche will transfer risk to reinsurers covering the next 150 basis points to 300 basis points of losses. The B tranche will transfer risk to reinsurers covering the next 300 to 400 basis points of losses on the reference pool. Finally, once the pool has experienced 400 basis points of losses, the credit protection will be exhausted, and Fannie Mae will be responsible for any further losses.

Since 2016, in addition to the risk transferred to its DUS lender partners, Fannie Mae has transferred a portion of the credit risk on multifamily mortgages with an aggregate unpaid principal balance of more than $39.5 billion through its CIRT program.

Hunt Real Estate Capital provided agency loans of around $22.5 million to finance the acquisition of two multifamily properties located in Arizona.

The Barone Group and strategic partners backed both deals. Duke Stone at Churchill Capital Company represented the owners on transactions. Acquisition, investment and asset management services were provided by Bear Holdings Group LLC.

"These properties are being acquired as part of a 1031-exchange from the sale of another property that Hunt Real Estate Capital financed for the borrower in 2016," noted Colin Cross, Director at Hunt Real Estate Capital. "The borrower had a tight timeframe to close the acquisitions and allocate their 1031 funds, so we were thrilled Fannie Mae and Freddie Mac” could provide financing options during a very volatile period in the debt markets."

The properties are as follows:

• Canyon Woods Apartments:The property was built in 1984 and features 224 apartment units and is located in Phoenix. The community is situated on approximately seven acres and consists of 12, two-story buildings. It is well maintained and features a quiet, family-friendly environment. Hunt Freddie Mac loan facility featuring a 12-year term with six years of interest only. Upon acquisition, the borrower plans to implement a $2 million capital improvements plan to complete interior and exterior upgrades to improve property operations and better compete within the local market.
• Shadow Rose Apartments: The property was built in 1985 and features 148 apartment units. The community is situated on approximately 5.86 acres of land, and consists of 14, two-story buildings in Glendale, Ariz. It is in great physical condition and provides workforce housing for the local community. Hunt provided a Fannie Mae loan facility featuring a 12-year term with nine years of interest only. The transaction qualified for Fannie Mae's Green Rewards loan program where the borrower will implement water-saving improvements to lower future utility expenses. in return, they locked an interest rate that was 83 basis points below standard pricing. In addition, the borrower plans to implement a capital improvements plan of over $1.5 million to modernize interiors and common area amenities.