Freddie Mac has purchased a pool of mortgages totaling $162.4 million from Horsham, Pennsylvania-based GMAC Commercial Mortgage Corporation (GMACCM).
The purchase enabled the borrower--a joint venture between a seniors' housing operator and an institutional investor--to finance a dozen Sunrise Senior Living facilities throughout the eastern, western and central United States. The borrower took advantage of the cost savings and smooth execution provided by Freddie's Capped ARM (adjustable-rate mortgage) program through GMACCM, according to Freddie Mac.
"We're delighted that Freddie Mac's Capped ARM [program] met the borrower's business needs," said Margaret Scott, Freddie Mac's director of conventional products and senior housing. "It's always wonderful to have a great partner like GMACCM, who helped shepherd them through the benefits and flexibility of the Capped ARM."
The seven-year Capped ARM has no yield maintenance, and the borrower can prepay at any time. The prepayment premium is 3 percent in the first year, 2 percent in the second year and 1 percent thereafter. The 1 percent prepayment penalty is waived after the third year if the loan is refinanced with a fixed-rate...