Commercial/Multifamily Briefs June 11, 2020

Eastern Union Hires 75 Brokers For New Quarter-Point Fee Multifamily Group

Eastern Union, New York, hired 75 brokers for its new quarter-point fee for refinancing multifamily properties backed by Fannie Mae or Freddie Mac.

As the anticipated hiring rate increases, the company plans additional satellite offices in states across the country with major commercial real estate markets.

“The pandemic has ushered in a new era in our sector,” said Eastern Union Founder and President Ira Zlotowitz.

The new fee is offered by the company’s new Multifamily Group led by Michael Muller and Marc Tropp.

In addition to a quarter-point fee for agency refinancings, Eastern Union’s Multifamily Group established a half-point fee for agency acquisitions. The new pricing also extends to commercial mortgage-backed securities multifamily transactions. In comparison, commercial brokerages generally levy a one-point fee for mortgages placed with Fannie Mae and Freddie Mac.

According to Mortgage Bankers Association origination rankings, Eastern Union was the second-most active broker nationwide as an intermediary for loans backed by either Fannie Mae or Freddie Mac.

Freddie Mac Prices $257 Million Multifamily K-Deal, K-J29

Freddie Mac, McLean, Va., priced a new offering of Structured Pass-Through K Certificates backed by underlying collateral consisting of supplemental multifamily mortgages.

The company said it expects to issue $257 million in K Certificates (K-J29 Certificates), which should settle on or about June 11.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC served as Co-Lead Managers and Joint Bookrunners. Bancroft Capital LLC, BMO Capital Markets Corp., Cantor Fitzgerald & Co. and PNC Capital Markets LLC co-managed the process.