JLL closes First Freddie Mac Affordable Housing Mezzanine Loan
JLL closes $9.1M financing package for acquisition of 120-unit Teal Pointe apartment community
VANCOUVER, Wash., Oct. 31, 2018 – JLL Multifamily Capital Markets experts have arranged a $9.128 million fixed-rate senior and mezzanine loan financing package through Freddie Mac’s Targeted Affordable Housing (TAH) Preservation program for the Teal Pointe Apartments in Vancouver, Washington. The financing includes a $1.082 million mezzanine loan, the very first transaction funded through Freddie Mac’s new Targeted Affordable Mezzanine Loan program.
Managing Director Tim Leonhard and Senior Vice President Mary Davis of JLL arranged the financing on behalf of the borrower.
“The property is in good physical condition with strong curb appeal in a popular submarket where high tech companies are driving strong population growth and AMI increases,” said Leonhard. “We were able to structure the financing to take advantage of Freddie Mac’s new Mezz program which gives borrowers the ability to acquire multifamily communities and to compete with conventional owners while keeping those properties affordable,” he added. “Without the additional leverage, is this case we exceeded 85 percent LTV, and very attractive economics of the Freddie Mac Mezz loan it is highly likely that this asset would have been sold to a conventional buyer.”
Built in 1985 and fully renovated in 2003, Teal Pointe consists of eight two-story apartment buildings, a single-story clubhouse and leasing office and two detached garage buildings. Community amenities include a fitness center, pool, spa and a dog park. Teal Pointe is consistently 98% or better occupied.
JLL delivers multifamily investors a full range of solutions through one diverse, integrated platform. The division employs over 200 professionals who provide comprehensive investment sales and disposition services with access to thousands of domestic and foreign investors. JLL is also one of the nation’s largest affordable and conventional multifamily and seniors housing lenders with comprehensive loan underwriting, asset management and loan servicing capabilities. Agency/GSE lending and loan servicing are performed by Jones Lang LaSalle Multifamily, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated. Loans made or arranged in California are done so in accordance with a California Financing Law license.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with operations in over 80 countries and a global workforce of 88,000 as of September 30, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com