Apt. Owner Wins Interest-Only Loan for 10-Years

ATLANTA-In a creative financing deal, Collateral Capital Mortgage LLC of Birmingham, AL has brokered a $13-million mortgage from Freddie Mac for Birmingham-based Cole and Eddleman Development Co.

The loan gives the borrower interest-only payments on 736 units in four properties for the first 10 years of the 30-year mortgage.

The funding is through Freddie Mac’s AAA-rated, variable-rate bond credit enhancement program. The deal replaces the previously fixed (7.15%), privately placed tax-exempt bonds that were not fully paid. The effective interest rate is expected to be under 7%, but Freddie Mac didn’t disclose that number, according to a prepared statement from Collateral.