CBRE Capital Markets’ Debt & Structured Finance team has originated its first Freddie Mac Small Balance Loan (SBL) securitization, delivering 60 loans totaling approximately $143 million.
The SB10 offering, called FRESB 2015-SB10 Mortgage Trust, is a multifamily mortgage-backed securitization underwritten by Freddie Mac and issued by a third-party trust.
Mitchell Kiffe, senior managing director with CBRE’s Debt & Structured Finance team noted that the firm’s small balance lending team — led by veterans Jeff Hurley, Dan Winzeler and Jim Pfitzinger — was designed specifically to facilitate the SBL program, providing a dedicated source of multifamily financing to nationwide clients.
“We intend to grow our market share significantly after our successful launch into this segment of the multifamily mortgage market,” Kiffe said. “CBRE has maintained a long and successful relationship with Freddie Mac and we are pleased to be a focused and committed originator of Freddie Mac small balance loans.”
CBRE closed more than $8 billion in total Freddie Mac originations throughout 2015, and more than $262 million in small balance loans since June 2015. The securitization marks the tenth Freddie Mac SBL securitization brought to the market since August 2015.
Freddie Mac is guaranteeing three senior principal and interest classes and an interest only class of the securities and acting as mortgage loan seller and master servicer to the trust. In addition to those guaranteed classes, the trust will issue certificates consisting of the Class B, X2 and R Certificates which will be sold to private investors.
The deal priced as follows: