Freddie, HSBC Finance $140MM Property

Freddie Mac has announced the purchase of a $140 million mortgage from HSBC Bank USA to finance The Caroline, a mixed-use property in New York City.The loan is one of the five largest ever purchased by Freddie Mac, the government-sponsored enterprise said. The borrower elected partial interest-only financing, Early Rate-Lock delivery, and the GSE's new Fixed-to-Float Option. Under this option, borrowers agree to a yield-maintenance provision for the full term of the loan and receive in return a reduced interest rate and the option to extend the loan term for one year, Freddie Mac said. At the end of that year, the rate converts to a floating rate equal to 250 basis points over the one-month Freddie Mac Reference Bill Index. The Caroline, located in the Chelsea section of Manhattan, consists of 431 dwelling units, 105,000 square feet of retail space, and a 278-car parking garage.