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Vintage Apartments

Houston Refi is First SOFR Loan Bought by Freddie Mac

CBRE has arranged a refinancing on Houston’s Vintage Apartments in what’s reportedly the first multifamily loan indexed to the Secured Overnight Financing Rate (SOFR) to be purchased by Freddie Mac. Introduced in 2018, SOFR is replacing the longstanding Libor benchmark rate.
 
CBRE arranged the refi of a $20-million bridge loan for Vintage Apartments, a 292-unit multifamily project in Houston’s Brookhollow/Inwood neighborhood.

The 10-year floating rate loan indexed to SOFR was made to two commercial real estate investment companies based in Houston. CBRE’s Houston office closed the loan.

“By utilizing the new SOFR-indexed floating rate loan programs of Freddie Mac and Fannie Mae, a sponsor can obtain a very attractive cost of capital typically in the 2.5-3.0% range for loans 70% LTV and higher, while maintaining exit flexibility at a very low cost, typically 1% of the loan value,” said CBRE’s Mitchell Kiffe.

For comments, questions or concerns, please contact Paul Bubny

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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