FREDDIE MAC AND HOLLIDAY FENOGLIO FOWLER FINALIZE $13 MILLION PREMIER LEASE-UP DEAL

Deal Is One Of The First Transactions To Go Through New Execution

McLean, VA – Freddie Mac announced today that it has finalized a $13 million deal with Holliday Fenoglio Fowler (HFF) that is one of the first transactions to go through its new Premier Lease-Up execution.

Freddie Mac’s purchase of the $13 million mortgage enabled the borrower, J.C. Hart Co., a leading developer in Indianapolis, to lock its long-term fixed-rate financing at a very competitive rate while the property was still proceeding through lease-up. The mortgage is secured by the Austin Springs Apartments, which comprises 204-unit garden style apartments south of Dayton, Ohio, in Miamisburg.

“Freddie Mac’s Premier Lease-Up execution gave us an opportunity to lock a rate to assure we could take advantage of market interest rate conditions when there was a great deal of uncertainty as to where treasury yields were trending,” said John Hart, president, J.C. Hart Company, Inc. “With the benefit of the time allowed under the forward funding program, we were able to complete construction and accomplish the final stages of our lease up. The flexibility afforded by the Freddie Mac extended early rate lock structure is an attractive feature for us to consider on all of our future J. C. Hart communities.”

“The borrower, the J.C. Hart Company, Inc., fit our criteria as an experienced developer with excellent management and lease-up capabilities. In addition, Austin Springs is a well-located, high-quality property in a strong market. We’re pleased the Premier Lease-Up execution offered him greater flexibility and advantages that met his business needs,” said Richard Martinez, Freddie Mac’s Central region managing director.

Freddie Mac’s Premier Lease-Up execution is for qualifying loans on newly constructed or substantially renovated, market-rate properties in lease-up and utilizes Freddie Mac’s extended early rate-lock execution. Using this execution, the borrower can lock the interest rate well in advance of property stabilization prior to completion of construction and with occupancy as low as 40 percent. The execution may have up to an 18-month rate-lock period.

Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and four million renters in America.

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