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Freddie Mac Single-Sponsor Execution
Freddie Mac Single-Sponsor Execution offers flexible, non-recourse financing for large multifamily properties and portfolios of $250 million+. Terms are up to 30 years for fixed-rate loans and up to 10 years for floating-rate loans.
Freddie Mac Single-Sponsor Financing
Smart investors and developers understand that the largest multifamily properties and portfolios often need the most flexible financing terms — and fortunately, Freddie Mac agrees.
Freddie Mac's Single-Sponsor Execution is specifically designed to finance large multifamily properties and portfolios of $250 million and more — and with up to 30 year fixed-rate and up to 10-year floating-rate loan terms, non-recourse execution, and highly competitive interest rates, you'd be hard pressed to find a better option on the market. Plus, Freddie Mac's Single-Sponsor Execution is available for all property types, including Conventional properties, Seniors Housing Developments, Student Housing properties, Targeted Affordable Housing, and Manufactured Housing Communities, and supports eligible mixed-use properties.
Sample Freddie Mac Terms for Single-Sponsor Execution in 2023
Size: $250 million or more for one or more properties
Use: Financing one or more large multifamily properties
Terms: Up to 30 years for fixed-rate loans, up to 10 years for floating-rate loans, or some combination of both. Partial and full term interest-only loans also available.
Interest Rates: Fixed-rates based on U.S. Treasury Securities, floating-rates based on the 1-month LIBOR
Maximum LTV/Minimum DSCR: Varies
Recourse: Non-recourse with standard “bad boy” carve-outs
Cross-Collateralization: Borrowers can decide whether to use collateralized or uncrossed loans. individual property loans can be released from cross-collateralization as long as the remaining pool of loans still meets LTV/DSCR requirements.
Eligible Properties:
All major property types are eligible, including:
Conventional
Seniors Housing
Student Housing
Targeted Affordable Housing
Manufactured Housing Communities
Very competitive interest rates
Supplemental loans permitted
All property classes are permitted
Eligible mixed-use properties are supported
Early rate locks available, typically lasting around 60-120 days before purchase, index locks and standard delivery are also available
Optional Sponsor B-piece purchase allows for maturity laddering, substitution rights, and a lower effective pay rate
- Replacement reserves are generally required
Assumability: Uncrossed pools of properties are typically assumable. collateralized pools may be approved for assumption on a individual basis (typically restricted to transactions where the Sponsor purchases the B-piece.)
Advantages:
Disadvantages: