FREDDIE MAC COMPLETES $72 MILLION TRANSACTION WITH WACHOVIA SECURITIES AND HFF

A Happy Homecoming At Terra Vista

McLean, VA – Freddie Mac announced today that is has recently completed a $72 million transaction with Wachovia Securities and Holliday Fenoglio Fowler (HFF) using Freddie Mac’s Premier Lease-Up execution, which provided long-term financing at a competitive rate very early in the process and prior to completion of construction of Homecoming at Terra Vista, a 503-unit garden-style apartment complex in Rancho Cucamonga, CA.

“The competitors were offering a staged funding with separate rate-locks. Freddie Mac offered to rate-lock the entire $72 million and fund up front once the agreed-upon occupancy and rental collections were achieved. The Premier Lease-Up execution also eliminated the risk of interest rates increasing,” said Steve Griffin, Freddie Mac’s Western Region managing director.

“It was an exceptional and groundbreaking execution for one of our very best borrowers in a strong, growing area.  It provided flexible funding and allowed us to capture a piece of business that we normally would not have been able to do so early in construction and before the property was stabilized,” said Trevor Brotman, director, Wachovia Securities.

“Freddie Mac demonstrated its flexibility in creating a financing structure that was very good for the borrower,” said Don Curtis, HFF senior 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.

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 more than four million renters

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