|Three multifamily deals were among the latest transactions to help push outstanding commercial mortgage debt further past $3 trillion.
A first-time borrower refinanced the Oak Hollow Apartments, a 70-unit complex in Rock Hill, S.C., with a $910,000 loan closed by Arbor Commercial Mortgage LLC, according to an announcement. The Fannie Mae-approved, 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.31 percent.
Over in Dayton, Ohio, the Antelope Portfolio secured a 10-year loan of $2.1 million that will be sold to Fannie, Uniondale, N.Y.-based Arbor said. The financing on the 113-unit property amortizes on a 30-year schedule and has a 6.46 percent rate.
Arbor provided a $2.3 million loan to a new partnership group purchasing their first multifamily property together, the Salem Pines Manor Apartments in Angleton, Texas. With a note rate of 6.16 percent, the Fannie-approved, 10-year financing secured by the 140-unit complex amortizes over 30 years.
In the second quarter, commercial mortgage debt outstanding grew 3.4 percent from the first quarter to exceed $3.1 trillion, according to the Mortgage Bankers Association’s latest analysis of the Federal Reserve Board Flow of Funds data.“These numbers reflect the period preceding the recent changes in the credit markets, and show investors continued to invest heavily in commercial/multifamily mortgage debt during the second quarter,” MBA said in the announcement. “And while next quarter’s numbers are likely to show the impact of the recent market disruptions, commercial/multifamily fundamentals remain strong — property markets remain solid, loan delinquency rates are extremely low, and bonds backed by commercial real estate loans continue to perform well.”
Commercial banks continue to hold the largest share of commercial mortgages, with $1.34 trillion or 43 percent of the total. CMBS, collateralized debt obligation and other asset-backed securities issues are the second largest holders, with $710 billion or 23 percent, followed by life insurance companies’ 9 percent, government sponsored enterprises and agency- and GSE-backed mortgage pools’ 8 percent and savings institutions’ 7 percent, MBA reported.
However, CMBS, CDO and other ABS issues saw the largest volume increase — $49 billion — in commercial mortgage debt outstanding and therefore were the largest contributor to the quarter’s increase.
A 2.1 percent quarterly growth led to multifamily mortgage debt outstanding accounting for $778 billion of the quarter’s overall growth of $104 billion. The GSEs and Ginnie Mae hold 32 percent or the largest share of multifamily debt outstanding, with $142 billion in federally-related mortgage pools and $108 billion in their own portfolios.
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