GREENBELT, MD–Recently KeyBank Real Estate Capital provided a $56.25 million permanent mortgage loan to a joint venture between The Dolben Co. of Woburn, MA, and Atapco Properties in Baltimore. The 10-year, fixed-rate loan, which was executed through Freddie Mac's Lease-Up program, refinanced the construction debt for the development of Verde at Greenbelt Station here.
Sounds routine right? In many respects it was. But one element of this execution was unique: it used Freddie Mac's Lease-Up Program while also taking advantage of Freddie Mac's index lock program.
Here is why that was significant, at least to the borrower: it was able to lock in its interest rate when the property was only about 75% occupied. Then, it was able to secure funding the property were only about 90% occupied. KeyBank accomplished that via two programs — the index lock and Freddie Mac's lease up facility — which are not usually blended.
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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.
