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Freddie Mac does senior housing securitization.

Freddie Mac has done its first securitization of assisted living and senior facility multifamily mortgages. In this deal, a $55 million portfolio for Alterra, the nine mortgages averaged $6.1 million. Five were located in New York, two in Michigan, and one each in New Jersey and North Carolina. All were Originated by GMAC Commercial Mortgage Corp. and swapped for Freddie Mac participation certificates which GMAC then sold though its trading desk.

More recently, Sunrise received an $88 million long term Freddie Mac loan commitment from GMAC. The loan, carrying an annual interest rate of 7.14 percent, will have a 10-year maturity and will be secured by eight assisted living properties in New Jersey, Pennsylvania, and Virginia.

"We are pleased that our relationship with GMAC has expanded to include Freddie Mac," Jay Pope, Sunrise senior vice president of finance, said in a statement. "Our expectation is that this will be a new source of long term corporate financing that will allow us to manage our interest rate exposure and free up other credit lines."

Freddie Mac's entry into the ALF market is expected to give a boost to a sector experiencing a capital crunch.
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Publication:Contemporary Long Term Care
Geographic Code:1USA
Date:Jul 1, 1999
Words:195
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