INSIDE THE DEAL: One of the First Freddie Mac Capital Markets Transactions Closes with 79% LTV, Favorable Pricing

By Keat Foong, Executive EditorLincoln, Neb.–Freddie Mac is closing the first financings under its conduit program. The Capital Markets Execution is supposed to bring more flexibility, lower spreads, a more favorable Early-Rate Lock option–and even more loan dollars as this transaction, which carries a 79 percent Loan-to-Value (LTV), attests. The Links at Lincoln was one of Freddie Mac’s first Capital Markets Execution loans to be rate locked and funded. Freddie Mac had purchased the $38.7 million mortgage from Holliday Fenoglio Fowler (HFF). The transaction allowed the borrower to retire construction financing on The Links at Lincoln, a 51-building, 612-unit apartment community. Amenities at the property include a clubhouse, pool, fitness center and business center. The interest rate was not disclosed. The $38.715 million loan request for the property, presented to the Central Region from the Dallas office of HFF, gave Freddie Mac the opportunity to work with a nationally renowned multifamily developer and operator, Lindsey Management Co. Inc. The company owns and operates about 29,000 units in seven states. “The CME Pilot allowed us to achieve the best possible pricing and maximize proceeds over a typical portfolio execution, which was important to Lindsey on this transaction,” said HFF Director Brian Carlton. According to Freddie Mac, good coordination among the companies was among the reasons for the deal’s success. Freddie Mac’s Production and Underwriting team coordinated with the team at HFF. The originator, his analyst, the closer and the director that oversees agency business worked to make the transaction smooth and successful, according to the company.