In response to a growing need for capital in the workforce and affordable housing sectors, Freddie Mac has launched new workforce mezzanine and targeted affordable mezzanine loans that can be originated concurrently with another Freddie Mac loan. Borrowers receive preferred financing terms, including 90% leverage and debt service coverage ratio as low as 1.05%, in exchange for agreeing to limit rent increases on 80% of their projects’ units. Hunt Real Estate Capital Directors Suzie Cope and Kevin Deegan discussed these new offerings with Bisnow and how they can create new financial incentives for borrowers.
Hunt Real Estate Capital
Hunt Real Estate Capital, a subsidiary of Hunt Companies, Inc., is a leader in financing commercial real estate throughout the United States. The Company finances all types of commercial real estate: multifamily properties (including small balance), affordable housing, office, retail, manufactured housing, healthcare/senior living, industrial, and self-storage facilities. It offers Fannie Mae, Freddie Mac and FHA in addition to its own Proprietary loan products. Since inception, the Company has structured more than $27.5 billion of loans and today maintains a servicing portfolio of more than $15.1 billion. Headquartered in New York City, Hunt Real Estate Capital has 241 professionals in 24 locations throughout the United States.