Dealmaker: CBRE Arranges $21M in Small-Balance Loans

CBRE Capital Markets, Los Angeles, provided $19 million in Freddie Mac Small Balance Loan funds for a 10-loan Atlanta multifamily portfolio.

The portfolio includes 458 units across 12 properties.

CBRE Capital Markets Vice President of Wholesale Lending Jeffrey Pirhalla refinanced the properties with 20-year hybrid adjustable-rate loans with a 10-year fixed-rate period followed by 10 years with an adjustable rate.

“This loan structure allowed the borrower to refinance into long-term fixed-rate loans at a very attractive interest rate,” Pirhalla said. “It also provided the borrower with cash-out proceeds and three years of interest-only payments, which significantly increased cash flows across the portfolio.”

Pirhalla noted that the met the requirements for the Freddie Mac Small Balance Loan Program, which supplies financing ranging from $1 million to $6 million.
Bellwether Enterprise Vice President Kelly Martone brought the deal to CBRE for borrower Nelkin Real Estate, Alpharette, Ga.

“CBRE’s Freddie Mac Small Balance Loan Program provided a non-recourse loan structure with flexible prepayment options, low closing costs and great leverage,” Martone said. She noted that the loan closed just 52 days from application.

CBRE also secured $2.1 million for an 88-unit multifamily property in Huntsville, Ala. The transaction brings CBRE’s total to more than $1 billion in small-balance loan originations since it joined the program in April 2015.

Craig Hall, vice President in CBRE’s Atlanta office, secured the 10-year fixed-rate loan. The loan included a 30-year amortization schedule and two years of interest-only payments.

“Our borrower’s investment requirements were proceeds-driven,” Hall said. “We were able to underwrite and close the loan quickly to meet the borrowers’ tight timeline while still delivering the requested funds and loan features at an attractive rate.”