Briefs From Freddie Mac, Arbor Realty Trust

Freddie Mac Prices $362 Million Multifamily Small Balance Loan Securitization

Freddie Mac, McLean, Va., announced the pricing of the SB84 offering, a multifamily mortgage-backed securitization backed by small balance loans underwritten by Freddie Mac and issued by a third-party trust.

The GSE said it expects to issue $362 million in SB Certificates (SB84 Certificates), which should settle on or about March 19, 2021. Freddie Mac Small Balance Loans generally range from $1 million to $7.5 million and are generally backed by properties with five or more units. This is the third SB Certificate transaction in 2021.

Amherst Pierpont Securities LLC and Wells Fargo Securities LLC served as Co-Lead Managers and Joint Bookrunners.

Arbor Realty Trust Closes a $785 Million Collateralized Securitization Vehicle
Arbor Realty Trust, Uniondale, N.Y., closed a $785 million commercial real estate mortgage securitization, the firm’s fourteenth collateralized securitization vehicle.

An aggregate of $655 million of investment grade-rated notes were issued (the “Notes”) and Arbor retained subordinate interests in the issuing vehicle of approximately $130 million. The $785 million of collateral included approximately $150 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 133 basis points over one-month LIBOR, excluding fees and transaction costs. The facility has a 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, subject to certain conditions.

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 proceeds of this securitization to repay borrowings under its current credit facilities, pay transaction expenses and to fund future loans and investments.

Some of the Notes were rated by Moody’s Investors Service Inc. and all of the Notes were rated by DBRS Inc.