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WASHINGTON, DC-The Washington DC office of CBRE|Melody has become a member of Freddie Mac's Multifamily Program Plus network. The designation means the office can sell loans secured by multifamily properties in Maryland, Virginia and the District of Columbia.
Other corporate offices have been active in the program, particularly the Dallas branch. The DC office joined "because it will provide an invaluable tool for our clients to be able to access Freddie Mac," Maury Zanoff, senior director, who manages the region along with his partner Joe Donato, tells GlobeSt.com.
Freddie Mac purchases multifamily mortgages through locally based lenders that must meet its origination and servicing standards.
Donato said in a statement that the CBRE | Melody's mid-Atlantic region arranged over $2 billion in multifamily financings over the past two years. Zanoff says that the branch is on track to close $750 million to $1 billion in transactions for 2006. "Last year it was close to $1 billion."
Zanoff declined to estimate how much additional volume would be generated with the Freddie Mac Program Plus designation. Another Freddie Mac Program Plus lender in the area, Johnson Capital Group, Inc., based in Vienna, Va., closed $300 million of debt in the local marketplace last year, according Martin Fayer, senior vice president of the firm.
The DC marketplace has been trending to higher leveraged acquisition financing, he also reports. "We have seen a tremendous amount of this, as well as a fair amount of refinancing of existing debt." Some 80% to 90% of the volumes have been acquisition financing, he estimates, of mostly A and B quality real estate backed by institutional sponsorship.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
