Fannie Mae has completed a multi-tranche credit insurance risk transfer transaction covering a pool of around $11.7 billion of existing multifamily loans in the company's portfolio.

The transaction, MCIRT 2019-01, is the fifth credit-risk transaction and designed to increase the role of private capital in the multifamily mortgage market and mitigate risk for taxpayers.

"Further innovation and reinsurer interest allowed us to bring to market our first three-tranche offering," said Jonathan Gross, vice president of multifamily for Fannie Mae. "This new transaction transferred $332 million of risk to reinsurers and insurers, making it the largest single transfer of risk for our multifamily credit insurance risk transfer program. Depending on market conditions, we plan to return later this year with additional multifamily credit insurance risk transfer transactions."

Fannie Mae's multifamily credit insurance risk transfer program shares risk with many reinsurer and insurer counterparties and supplements the Delegated Underwriting and Servicing program where originating lenders share around one-third of the credit risk on multifamily loans.

The covered loan pool for the transaction consists of 1,155 loans, secured by an equal number of multifamily properties acquired between July and October 2018. Each loan has an unpaid principal balance of $30 million or less.

Under the structure of the deal, Fannie Mae will retain risk on the first 75 basis points of losses on the reference pool. The C tranche will transfer risk to reinsurers covering losses between 75 basis points and 150 basis points. The B tranche will transfer risk to reinsurers covering losses between 150 basis points and 275 basis points. The A tranche will transfer risk to reinsurers covering losses between 275 basis points and 400 basis points. Once the pool has experienced 400 basis points of losses, the credit protection will lapse, and Fannie Mae will be responsible for additional losses.

Since 2016, in addition to the risk retained by its DUS lender partners, Fannie Mae has transferred a portion of the credit risk on multifamily mortgages with an unpaid principal balance of more than $51 billion.

Multifamily investment firm Blaze Partners has acquired The Gibson, a 250-unit luxury apartment community in Charlotte, N.C

This transaction marks a continuation of the Company's current strategy of acquiring Class A communities within dynamic locations throughout institutional growth markets in the Southeast.

"We are thrilled to expand our Charlotte presence and add The Gibson to our growing portfolio of institutional assets," said Chris Riley, co-founder and managing partner of Blaze Partners. "The Gibson, unique in its design, walkability, and historic legacy, helped spur the transformation of the neighborhood. We are excited to take a stake in the continued growth of the submarket and embrace a community that stands unmatched amongst its peer set."

The Gibson, developed in 2015 and built upon the site and legacy of a historic recording studio, offers residents a mix of one-, two-, and three-bedroom floor plans with designer-level finishes and an expansive amenity set

"The Gibson transaction marks over $215 million in net acquisition volume in the last nine months, the vast majority of which has been with a slant towards core-plus assets in markets and locations that we deem to have superior long-term fundamentals with transformative catalysts to further drive demand," said Eddy O'Brien, co-founder and managing partner of Blaze.  "We anticipate a continuation of this investment focus throughout the year as we look to prudently expand our footprint throughout the Southeast with a keen eye towards relative risk and return."

Pembrook Capital Management originated a $9,150,000 million first-mortgage construction loan for the development of a 70-unit multifamily project with retail in Philadelphia.

[caption id="attachment_9795" align="alignleft" width="240"] Philadelphia[/caption]

Located at 1427 Germantown Avenue, the 53,575 square foot property will offer smaller, more affordable rental housing than many other new projects built in the nearby Northern Liberties and Fishtown neighborhoods.

"We continue to provide financing solutions for middle-market developers and owners throughout the U.S.," said Stuart J. Boesky, CEO of Pembrook. "We're bullish on Philadelphia's multifamily market and this transaction is a great opportunity for investment into a neighborhood that is in the process of rapid revitalization. It's exciting to support a project that has the potential to deliver more affordable apartments to renters in the local market."

The sponsor is an active multifamily developer in the Philadelphia metro area. A similar 50-unit project is under development by the sponsor in the same neighborhood.

Pembrook is a real-estate investment manager that provides financing throughout the capital structure. The firm has originated or participated in investments totaling over $1.4 billion since it began investing in 2007.

Civitas Senior Living and LKP Ventures are developing Harvest Senior Living, a new, luxury assisted living and memory care community in Roanoke, Texas.

The new, 67,000 square-foot property will be situated on 5.25 acres.

"We are thrilled to be partnering with LKP Ventures on this new community," said Wayne Powell, Founder and CEO of Civitas Senior Living. "We share a passion for next-level hospitality and great development, and I look forward to working together to bring the Roanoke area's seniors the high level of accommodations, services, and support they deserve."

"We think the unique combination of Roanoke's small-town feel and all the modern conveniences that come with an up-and-coming area are a perfect fit for the senior living market," said said Narayan Patel of LKP Ventures.

Harvest Senior Living will offer 67 assisted living and 16 memory care apartments with premium accommodations, including features such as:

• Private residences
• Resort-quality amenities
• Concierge-style amenities
• Chef-prepared meals
• 24/7 professional care

This community represents a continued pattern of successful growth and expansion for Civitas Senior Living, it is the first senior living project for LKP Ventures. However, they do have 40 years of experience in the lodging sector of the hospitality and industry.

The decision for the two companies to partner on this project was an easy one. "We are known for our passionate approach to senior living. LKP Ventures is passionate about providing outstanding hospitality. It was a simple transition for them, and a natural partnership for both companies," said Powell.