FREDDIE MAC AND PNC CLOSE DEAL THAT WILL HELP RENOVATE AGING DEVELOPMENT IN ATLANTA

McLean, VA – Freddie Mac and PNC Multifamily Capital recently closed a Forward Commitment transaction for a four percent Low-Income Housing Tax Credit deal that will help finance the rehabilitation of a property in an Atlanta neighborhood undergoing revitalization.

Vineyards of Flat Shoals is a 228-unit, 29-building property built in the 1970s. With PNC putting up the tax-credit equity and with Freddie Mac doing the financing, the borrower will be able to turn substandard existing housing into completely renovated housing in a submarket within Atlanta that has seen substantial renovation. Ninety percent of the units will be designated for people making 60 percent of area median income.

"Freddie Mac was very flexible on this transaction. There were several aspects of it that we had to customize, and the Southeast Region worked very effectively with us to arrive at something that was acceptable to the borrower and all parties in the transaction," said Tom Booher, executive vice president of PNC Multifamily Capital.

"The borrower received a low, fixed-rate execution with a 30-year term, and the flexibility of doing an 18-year remarketing lowered their rate on the bonds. This is a great example of how one of our correspondent lenders put the deal together from end to end with results that will contribute to the revitalization of this community," said Michael McRoberts, Southeast Regional Office managing director.

Since the introduction of the Freddie Mac Program Plus network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for over 40,000 multifamily properties totaling more than $100 billion.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and nearly four million renters.

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