CBRE has arranged $65.5m in Fannie Mae financing to The Reliant Group for the acquisition of Mustang Village, a 514-unit, 1,006-bed student housing property located adjacent to California Polytechnic State University in San Luis Obispo, California.
The 10-year, floating-rate loan was arranged by Andrew Behrens and Jesse Weber of CBRE’s San Francisco office, the same team that in March arranged $44.6m in construction financing to The Integral Group and equity investor Argosy Real Estate for the construction of Eviva Mission Bay, a 129-unit multifamily community in San Francisco, California.
Last month the team arranged more than $150m in Fannie Mae financing to refinance The Markham Apartments, an 80-building, 504-unit residential community in downtown Cupertino, California, while CBRE’s Midtown Manhattan office arranged a $75m, 20-year, fixed-rate, non-recourse loan from AIG Investments on the new Stanhope Student Apartments, adjacent to North Carolina State University in Raleigh, North Carolina.
Fannie Mae provided $28.9bn in financing to the multifamily market in 2014, working with lender partners to finance 446,000 units. But after the Federal Housing Finance Agency (FHFA) in May revised the income threshold criteria for affordable housing and excluded certain housing from $30bn annual origination caps set earlier this year, many expect the number to surpass that by year’s end.
Since its inception in 1992, The Reliant Group has acquired more than $1.8bn of real estate and loan transactions requiring rehabilitation, construction, repositioning, environmental remediation, financial restructuring and hands-on management.