LOS ANGELES—Multifamily is still the most liquid sector in commercial real estate, according Peter Smyslowski, managing director of HFF. Last week, GlobeSt.com reported that HFF client Prime Residential secured an $878-million loan through Freddie Mac to settle existing debt on the Park La Brea apartment community, the largest multifamily complex on the West Coast. This is the largest single-property loan Freddie Mac has purchased.

This supports the theme that multifamily is probably the most liquid space in the market,” says Smyslowski. “A lot of capital providers are still under allocated in housing.” Smyslowski led the team that represented Prime Residential in the transaction. The team included executive managing director Jody Thornton, senior managing directors Paul Brindley and Kevin MacKenzie and managing director Charles Halladay.

Even for a loan this big, which presented some challenges because of its sheer size, Smyslowski still received interest from several lenders. “The size of the loan was the only challenge,” says Smyslowski. “Many lenders had interest, however it was too large for many of them. That being said, there was still plenty of competition to win the assignment.”

For confidentiality purposes, Smyslowski could not comment further on the terms of the loan, aside to say that Freddie Mac expects to securitize the loan through its K-Deal program, and that they secured the loan through Freddie Mac's rate lock program with competitive terms. “It was a good fit for a myriad of reasons, in particular, the early rate lock feature was beneficial, the competitive terms and the ability for one lender to fund a loan of this size with the certainty that Freddie Mac provides,” he adds about why this particular situation was the best fit for the borrower.

The 18-tower Park La Brea apartment community sits on 144 acres and has a total of 4,245 units and 175 garden-style apartment homes. The highly amentized property features 24-hour security patrol, courtyards, wifi cafes, fitness trails, a movie theater, hair salon and business and fitness centers, and has a 96% occupancy rating. It was originally built between 1944 and 1952 and underwent renovations between 1995 and 2014.