Today, more than ever, Borrowers are looking for flexibility in managing debt across their multifamily portfolio. Fannie Mae’s structured finance products are powerful financing tools that deliver just that.
Our Credit Facilities and Bulk Deliveries offer a combination of variable- and fixed-rate debt with laddered maturities and flexible post-closing features, so Borrowers can sell, acquire, and rehab properties as needed. Other portfolio debt solutions simply can’t compete with the level of customization we offer.
And, our seasoned team of real estate professionals has expertise that goes beyond structured finance. They are familiar with the full breadth of Multifamily’s offerings, from Structured ARMs to Affordable to Market-Rate deals, in all 50 states.
Do you have a Borrower who could benefit from our structured transactions?
Reach out to the team ([email protected]) to help you develop a winning strategy – because you can’t communicate too early or too often when it comes to Credit Facility transactions. As a reminder, Credit Facility and Bulk Delivery transactions should not be submitted through DUS Gateway® prior to having a discussion with a Fannie Mae team member.
We financed $6.5 billion June 2020 YTD in structured transactions. Here are examples of recent transactions that may fit your Borrower’s needs:
Deal 1: Borrower owns a large portfolio with most of the debt having maturity dates spanning a 2-year period with the first of the maturities in 12 months.
A Credit Facility to refinance the entire portfolio is structured with multiple tranches of both fixed and floating rates with maturities spread over a 7- to 15-year period. The financing encompasses almost the entirety of their owned portfolio, so the single Master Credit Facility Agreement makes debt management seamless.
Deal 2: Borrower is actively in the market acquiring properties and has one or more Purchase and Sale Agreements covering multiple properties. They are looking for simple acquisition financing as they grow their portfolio.
The Credit Facility structure provided maximum credit leverage for additions to accommodate purchases. Release and substitution provisions provided flexibility for opportunistic sales or culling of properties that might not meet operational objectives. The Facility’s pre-negotiated underwriting terms make it easy for the Borrower to bid on prospective acquisitions and gives both the buyer and seller comfort that financing will be in place.
Other Considerations to Keep in Mind
Credit Facilities have a minimum size of $100 million. Waivers to the deal size are limited and are primarily reserved for repeat Credit Facility sponsors. In order to appropriately compensate the Lender for the additional work involved in processing Credit Facility transactions, we also have new minimum origination fees based on transaction size.
Origination Fees for Credit Facilities
|
Facility Size |
Total Fee |
Lender Fee |
Fannie Mae Fee |
|
$100 to $300 million |
45 bps |
35 bps |
10 bps |
|
$300 to $500 million |
40 bps |
30 bps |
10 bps |
|
Over $500 million |
33 bps |
25 bps |
8 bps |
More information is available on our Multifamily website and we look forward to hearing from you soon!