KeyBank has originated a $215m Freddie Mac loan to refinance the Harbor Point apartments in Dorchester, Massachusetts.
The complex, built in 1950 and renovated in 2006, features 1,283 apartment units spread across 50-acres of land facing the Boston Harbor waterfront in South Boston.
Harbor Point, made up of affordable housing units, was previously refinanced in 2007 through GS 2007-GG10, a $7.6bn bundle of commercial mortgage pass-through certificates.
Its owner/developer, Corcoran Jennison, is building another apartment complex (University Place Residences) on an adjacent street, Mt. Vernon Street. Both properties sit within a swath of land organizers are considering as a potential site to hold the 2024 Olympics and Paralympics.
This has led to speculation that properties within that swath could be sold, incorporated into a so-called Olympics Village, or lead organizers to relocate the proposed Olympics site.
Freddie Mac, a government-sponsored enterprise (GSE), works with a network of lenders to finance apartment buildings around the country, later purchasing the loans so lenders can use proceeds to originate new ones. The GSE settled $28.3bn in new multifamily volume last year, comprising 427,000 rental units.
In its multifamily economic outlook report for 2015 the GSE said the multifamily market will move forward this year at a “slightly slower” pace, which could curb lending volume.
A recent report also showed that GSE share of multifamily loans has dipped below “normal” levels as private capital re-enters the multifamily lending space.