FREDDIE MAC AND COLUMN GUARANTEED WORK TOGETHER TO ENABLE BORROWER TO REHAB OLD NEW ORLEANS BREWERY

Vacant Falstaff Brewery Damaged By Katrina Will Be Converted Into An Apartment Complex

McLean, VA – Freddie Mac announced that working in coordination with Column Guaranteed it issued a $7.6 million unfunded forward commitment that enabled the borrower, Renaissance Property Group, to proceed with plans to gut and rehabilitate the former New Orleans Falstaff brewery into 147 apartment units.

The transaction utilized the Freddie Mac Affordable Forward Commitment 9 percent Tax Credit product, and also included federal historic tax credits, local real estate tax abatement, and federal low-income housing tax credits approved by the Louisiana Housing Finance Authority. The Housing Authority of New Orleans has also committed to providing Section 8 rental assistance for qualified tenants under a Housing Assistance Payments contract.

The historic brewery, which had been vacant for years, sustained wind and flood damage from Hurricane Katrina. It is comprised of seven adjacent and inter-connected buildings. When the rehabilitation is complete, the brewery will be converted into a 147-unit apartment complex, consisting of 56 1-bedroom, 1-bathroom units; 60 2-bedroom, 2-bath units; and 22 3-bedroom, 2-bath units. The complex, will have gated parking with 135 parking spaces, plus 40 on-street spaces. The building is also close to public transit.

"Freddie Mac provided a 24-month unfunded forward commitment that allowed the borrower to rate-lock the permanent mortgage at the time we issued the commitment," said Michael Meers, Freddie Mac Southeast Region managing director. "We were pleased to be able to contribute to the development of much-needed housing in greater New Orleans."

"Developing affordable housing in New Orleans was unusually challenging even before Katrina," said David Miller, vice president of the Renaissance Property Group. "The storm dramatically amplified the need for housing, yet closing deals has become more difficult. It is critical to focus on the particular characteristics of an individual project and address the related risks intelligently. Freddie Mac and Column Guaranteed excelled at this."

"Freddie Mac and Column Guaranteed continue to lead the multifamily rebuilding efforts in New Orleans post Katrina by partnering on this inner-city core neighborhood," said Stephen Farnsworth, Column Guaranteed vice president. "This landmark project will provide essential affordable and mixed-income housing to a viable, yet devastated part of historic New Orleans. Freddie Mac continues to provide solutions to complex financing structures that work in conjunction with local, state and federal incentives."

Two yeas after Hurricanes Katrina, Rita and Wilma devastated much of the Gulf Coast, Freddie Mac continues to play a vital role in on going recovery efforts there. From August 2005 through the end of July this year, Freddie Mac has provided nearly $1.4 billion in financing to the region for multifamily properties, consisting of more than 32,000 units. Our 2007 year-to-date total for multifamily-related mortgage purchases in these affected areas is $310 million.

Since the launching of Freddie Mac's current multifamily business in 1993, Freddie Mac has purchased more than $165 billion in multifamily mortgages, financing rental housing for more than four million families.

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-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

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