CBRE Capital Markets’ Business Lending team has secured 250 loans totaling $615 million through the Freddie Mac Small Balance Loan (SBL) program, Real Estate Capital has learned.
The firm joined the program less than a year and a half ago, in April of 2015, to complement its existing multifamily programs amid strong demand for smaller loans, offering financing from $1 million to $5 million for multifamily properties nationwide with five or more units.
The 250th loan, secured by vice president Rob Doxsee, was a $2.6 million loan to refinance a nine-unit multifamily property in Seattle, Washington. The five-year hybrid loan, with one year interest-only, was financed at a 70 percent loan-to-value and will be used to pay off existing debt and return capital to the borrowers.
“When the owners first bought the property in 2014, they took the two existing buildings down to the studs and completely rebuilt them,” Doxsee said. “With the cash they will receive, the borrowers are planning to acquire another property. Currently, they have more than 100 multifamily housing units under construction or rehab around the city.”
The SBL initiative is meant to provide additional liquidity to smaller apartment properties, as close to one-third of renters live in smaller properties with five to 50 units.
“We are tremendously pleased with the quick growth,” said Dan Winzeler, managing director of Business Lending, CBRE Capital Markets.
CBRE provided $21.42 billion in apartment financing across the US in 2015.