Thomas Barrack’s Colony Capital won the bidding for the 27 performing multifamily loans, beating out 22 other parties.
"This transaction marks our first multifamily bulk loan sale. We were pleased with the strong investor demand as evidenced by the 23 bids on the loan portfolio," said Freddie senior vice president Mike Lipson.
Freddie generally securitizes newly originated multifamily loans. The success of the bulk sale will give the GSE a new disposition option to reduce the size of its multifamily portfolio. However, Freddie doesn’t have plans to conduct another bulk sale at this time, a spokesperson said.
Mission Capital Advisors served as Freddie’s loan sale advisor. "The deep investor interest in this performing transaction, which ran the spectrum from balance sheet lenders to private equity funds, was further proof that the U.S. real estate recovery is gathering steam despite recent interest rate volatility," said MCA managing director Will Sledge.