A portfolio of nearly $200 million in loans secured by multifamily properties and other commercial real estate has traded hands amid strong investor interest.
The recently completed multifamily bulk sale included 27 performing mortgages with an aggregate unpaid principal balance of $195 million.
In addition to apartment properties, the CRE loans in the portfolio were backed by student housing properties and assisted-living facilities.
The seller in the transaction was Freddie Mac. It was the first multifamily bulk loan sale for the secondary lender.
Mission Capital Advisors was retained as the loan sale advisor to handle valuation and analysis, establish and maintain the due diligence data room and conduct multiple bid rounds. It also assisted Freddie with the settlement and closing five days after the final bid date.
Freddie Mac Senior Vice President of Multifamily Asset Management and Operations Mike Lipson noted in the announcement that investor demand was strong with 23 bids.
Mission Capital Advisors Managing Director Will Sledge said that bids were received from entities ranging from balance sheet lenders to private equity funds. He called investor interest “deep” and said it “was further proof that the U.S. real estate recovery is gathering steam despite recent interest rate volatility.”
