Freddie Mac Buys $140M in Seniors Housing Mortgages

Freddie Mac has announced the purchase of a $140 million pool of mortgages from Capmark Finance Inc.Prudential Real Estate Investors also invested in the deal with Freddie Mac. The mortgages are secured by seven senior housing properties, which include 880 rooms in two assisted living facilities and five independent living centers located in Maryland, Massachusetts, Rhode Island, and Virginia. The purchase has allowed the Shelter Group, a Baltimore property management firm, to refinance and recapitalize these properties.The properties involved in the deal have all been built within the last thirty years. Details of the transaction include a ten year plus one year fixed interest with seven years of partial interest. David Carliner, executive vice president of the Shelter Group rated the terms of the deal as “super competitive.”Freddie Mac was motivated by the reliability and strength of the seniors housing market. “The seniors housing market is growing by leaps and bounds. We are proud to be a stable, reliable source of funding for it,” the corporation’s vice president of Production and Sales Mitchell Kiffe stated in a release. Carliner, who indicated that Capmark was a strong advocate for the deal, added in the release, “Freddie Mac stood by us despite the fact that the financial markets saw more turbulence from the inception of the transaction until its closing than the industry had experienced in a very long time.”The government-sponsored enterprise Freddie Mac has provided more than $194 billion in financing for approximately 55,000 multifamily housing properties since the inception of its Freddie Mac Program Plus network for loan originators. Freddie Mac recently provided $31 million for the refinancing ofLincoln at Ovaltine Court in Villa Park, a suburb of Chicago.