FREDDIE MAC AND COLLATERAL REAL ESTATE CAPITAL COMPLETE TRANSACTION TO FUND SENIOR HOUSING ON LONG ISLAND, N.Y.

The Bristal Portfolio Comprises 640 Units

McLean, VA – Freddie Mac and Collateral Real Estate Capital announced the completion of a transaction in which Freddie Mac purchased a pool of cross-collateralized mortgages in Nassau County, Long Island, N.Y., totaling $173 million.

The Bristal portfolio, made up of 5 properties and 640 units, was built within the last 7 years. The properties were constructed and financed using bond financing from two local municipal industrial development agencies (IDA). The IDA structure, though complicated, provided valuable tax abatements to the purchaser.

"We were pleased to work closely with Collateral and to provide the products and flexibility to meet the needs of the borrower," said Mitchell Kiffe, Freddie Mac Multifamily vice president of production and sales. "The Freddie Mac financing is helping to provide much-needed assisted living facilities in Nassau County."

The transaction utilized a combination of Freddie Mac's Standard Delivery and Early Rate-Lock programs. The acquisition was part of an installment sale with some of the sale proceeds not due and payable until after the acquisition took place.

"Freddie Mac's flexible financing enabled us to close on the transaction and simultaneously lock the rate on the future installment," said Scott Kavel, Collateral's managing director of Senior Housing. "Freddie Mac once again demonstrated its ability to execute and impress all involved."

Since the introduction of the Freddie Mac Program Plus® network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for over 48,000 multifamily properties totaling more than $147 billion.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

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