Gary Cohen, PWF regional vice president, tells GlobeSt.com that due to an extensive renovation program at both sites, Home Properties was able to realize more value. "They increased the value of the real estate and are realizing returns through increased rents."

PWF structured the $38.4 financing on Hawthorne Court/Hawthorne Estates with Fannie Mae's DUS discount mortgage-backed securities product. According to Neil Cullen, managing director and national sales manager of PWF, the benefit of DMBS is that it enables customers to benefit from the very low interest rates on the short end of the yield curve. "In the case of the Hawthorne financing, initial pay rate for the first 90-day security is in the low 2% range." Subsequent DMBS securities will be sold every three months to set the pay rates and Home Properties elected to go with a 10-year loan term with 30-year amortization. The loan is also convertible to fixed-rate at any DMBS rollover date. Both the Hawthorne Court/Hawthorne Estates and Heritage Square Apartments loans were originated by PWF's New Jersey office origination staff.

Home Properties acquired Hawthorne Court/Hawthorne Estates in 2002, and has since completed major renovations on the property including the complete rehabilitation of 79% of the units, residing and roof replacement. Hawthorne Court, was originally constructed in the 1960s, with the second section, Hawthorne Estates constructed in 1999.