Briefs From Arbor, Freddie Mac, Savills

Arbor Realty Trust Closes a $815 Million Collateralized Loan Obligation Securitization

Arbor Realty Trust, Uniondale, N.Y., closed an $815 million commercial real estate mortgage loan securitization.

Nearly $674 million of investment-grade-rated notes were issued and Arbor retained subordinate interests in the issuing vehicle of $141 million. The $815 million of collateral includes approximately $162 million of capacity to acquire additional loans for a period of up to 180 days from the closing date of the securitization.

The notes have an initial weighted average spread of approximately 137 basis points over one-month LIBOR excluding fees and transaction costs. The facility has an approximate two-and-a-half-year replenishment period that allows the principal proceeds from repayments of the portfolio assets to be reinvested in qualifying replacement assets.

The notes were issued under an indenture and are secured initially by a portfolio of real estate-related assets and cash with a face value of $815 million, with such real estate-related assets consisting primarily of first mortgage bridge loans.

Arbor intends to own the portfolio of real estate-related assets through the vehicle until its maturity and expects to account for the securitization on its balance sheet as a financing. Arbor will use the securitization’s proceeds to repay borrowings under its current credit facilities, pay transaction expenses and fund future loans and investments.

Freddie Mac Prices $1 Billion Multifamily K-Deal, K-129

Freddie Mac, McLean, Va., priced a new offering of Structured Pass-Through K Certificates backed by underlying collateral of fixed-rate multifamily mortgages with predominantly 10-year terms. The company said it expects to issue $1 billion in K-129 Certificates, which should settle on or about June 17, 2021.

Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC served as Co-Lead Managers and Joint Bookrunners. Mizuho Securities USA LLC, Multi-Bank Securities Inc., NatAlliance Securities LLC and Wells Fargo Securities LLC co-managed the process.

Savills Acquires T3 Advisors

Real estate advisory firm Savills acquired T3 Advisors, which will rebrand as T3 Advisors, A Savills Company.

T3 is a consultant for life sciences and technology firms founded in 2001 with offices in Boston, New York, San Francisco and Palo Alto.