Freddie Mac Single Sponsor Execution

Flexible, Non-Recourse Financing for Multifamily Properties or Portfolios Beginning at $250 Million Insured by Freddie Mac

When it comes to financing $250 million+ for one or more large multifamily properties, a regular Freddie Mac Multifamily loan just won’t cut it. At least, that’s the consensus of the savviest investors. These investors know that the largest multifamily properties and portfolios often need the most flexible financing terms-- and fortunately, Freddie Mac seems to think so as well. Specifically developed to tailor to the needs of the largest investors and developers in the industry, Freddie Mac’s Single-Sponsor Execution program is an excellent financing option for those larger than life deals.

Freddie Mac's Single-Sponsor Execution is specifically designed to finance large multifamily properties and portfolios of $250 million and up. With up to 30 years at a fixed-rate or up to 10-year floating-rate loan terms, non-recourse execution, and highly competitive interest rates, it would be a hard task to find a better option on the market. Freddie Mac’s single-sponsor execution loans are even available for all property types, including Conventional properties, Seniors Housing Developments, Student Housing properties, Targeted Affordable Housing, and Manufactured Housing Communities, and supports eligible mixed-use properties.

Sample Freddie Mac Terms For Single-Sponsor Execution

Size: $250 million or more

Use: Financing for one or more large multifamily properties

Terms:

  • Up to 30 years for fixed-rate loans
  • Up to 10 years for floating-rate loans
  • Partial and full-term interest-only loans also available

Interest Rates: Fixed-rates based on U.S. Treasury Securities, floating-rates based on the 1-month LIBOR

Maximum LTV/Minimum DSCR: Varies

Recourse: Non-recourse with standard “bad boy” carve-outs

Cross-Collateralization: Borrowers have the option to choose collateralized or uncrossed loans. Individual property loans can be released from cross-collateralization as long as the remaining pool of loans still meets LTV/DSCR requirements.

Eligible Properties:

All major property types are eligible, including (but not limited to):

Assumability: Uncrossed pools of properties are typically assumable. collateralized pools may be approved for assumption on an individual basis (typically restricted to transactions where the Sponsor purchases the B-piece.)

Advantages:

  • Very competitive interest rates
  • Supplemental loans permitted
  • All property classes are permitted
  • Eligible mixed-use properties are supported
  • Early rate locks available, typically lasting around 60-120 days before purchase, index locks and standard delivery are also available
  • Optional Sponsor B-piece purchase allows for maturity laddering, substitution rights, and a lower effective pay rate

Disadvantages:

  • Replacement reserves are generally required