Freddie Mac Continues Financing Support for Workforce Housing in
Historic Rental Community
LOS ANGELES, June 26, 2023 /PRNewswire/ -- Newmark1
Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the Company"), a leading
adviser and service provider to large institutional investors,
global corporations, and other owners and occupiers of commercial
real estate announces it has secured a $947 million loan for Los Angeles' historic Park La Brea, the largest apartment community on
the West Coast. Newmark sourced financing on behalf of repeat
borrower Prime Residential ("Prime") to retire existing debt.
Freddie Mac expects to securitize the loan through its K-Deal
program.
Newmark Executive Vice Chairman Mitch
Clarfield, Vice Chairman Ramsey
Daya, Executive Managing Director Chris Moritz and Vice President Alec Newman led the financing.
The 4,249-unit property is rent-controlled and includes 18
high-rise towers and 175 garden-style buildings spread over 144
acres. Approximately 10,000 residents live in the community, which
resembles a small city with 24-hour security patrol, landscaped
courtyards, fitness trails, a Wi-Fi café, movie theater, dry
cleaner, electric car charging and fitness centers.
"Park La Brea, the largest
housing community west of the Mississippi, is an iconic Los Angeles asset. This was a historic
financing that contains a variety of custom features, including the
flexibility to construct a significant number of Accessory Dwelling
Units (ADUs) on the property, which will contribute towards
addressing the state's housing and affordability crisis" Clarfield
stated. "We received interest from many different capital sources
on extremely competitive terms. Ultimately, the surety of close and
the history of collaboration between Prime, Freddie Mac and Newmark
gave Prime the comfort to proceed in turbulent times and get the
10-year fixed rate loan across the finish line."
"By continuing to support financing for Park La Brea, we are ensuring that many
Los Angeles families have a safe,
affordable place to live in this historic community," said
Steve Lineberger, Vice President
Freddie Mac Multifamily Production and Sales. "Working with
two great partners in both Newmark and Prime Residential, we are
pleased to continue to help support workforce housing via this
vital multifamily community that has been home to so many since the
1940s. We look forward to continuing to support liquidity,
stability and affordability to the multifamily market through these
types of transactions across the country."
"With the GSEs laser focus on high quality affordable housing,
we were honored to have worked with Prime and to partner with
Freddie Mac to close this landmark transaction," said Sharon
Karrafa, Vice Chairman, Co-Head of Production of Newmark's
Multifamily Capital Markets division.
Park La Brea was originally
developed by MetLife between 1941 and 1950 and has been owned and
managed by Prime Residential since 1995. The 95.5-percent-occupied
complex is located at 6200 West Third Street, about seven miles
west of downtown Los Angeles near
the Miracle Mile district.
Overall, debt originations continued to decelerate in the first
quarter of 2023 according to Newmark's 1Q23 U.S. Multifamily
Capital Markets Report. Newmark Research cites that
government-sponsored enterprises provide a buffer against the
cyclical lending conditions. Given the tightening lending standards
by banks and other lender types, GSEs play a crucial role in
providing liquidity, especially for mission-rich and affordable
housing.
About Freddie Mac
Freddie Mac's mission is to make
home possible for families across the nation. We promote liquidity,
stability, affordability and equity in the housing market
throughout all economic cycles. Since 1970, we have helped tens of
millions of families buy, rent or keep their home.
Learn
More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube
About Prime Residential
Prime Residential is a
private owner of high-quality, multifamily rental communities in
the western United States. It is
part of Prime Group, a diversified real estate equity, debt,
investment, and operating platform. Prime Group's platforms – Prime
Finance and Prime Residential – provide innovative solutions and
resources to meet the diverse needs of its investors, residents,
and other constituents. With over 500 employees, Prime Group has
over $18 billion of assets under
management and has offices in San
Francisco, New York,
Los Angeles, and Chicago.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries
("Newmark"), is a world leader in commercial real estate,
seamlessly powering every phase of the property life cycle.
Newmark's comprehensive suite of services and products is uniquely
tailored to each client, from owners to occupiers, investors to
founders, and startups to blue-chip companies. Combining the
platform's global reach with market intelligence in both
established and emerging property markets, Newmark provides
superior service to clients across the industry spectrum. For
the year ending December 31, 2022,
Newmark generated revenues of approximately $2.7 billion. As of March
31, 2023, Newmark's company-owned offices, together with its
business partners, operate from over 170 offices with approximately
7,300 professionals around the world. To learn more,
visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about
Newmark
Statements in this document regarding Newmark that are not
historical facts are "forward-looking statements" that involve
risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements. These
include statements about the effects of the COVID-19 pandemic on
the Company's business, results, financial position, liquidity and
outlook, which may constitute forward-looking statements and are
subject to the risk that the actual impact may differ, possibly
materially, from what is currently expected. Except as required by
law, Newmark undertakes no obligation to update any forward-looking
statements. For a discussion of additional risks and uncertainties,
which could cause actual results to differ from those contained in
the forward-looking statements, see Newmark's Securities and
Exchange Commission filings, including, but not limited to, the
risk factors and Special Note on Forward-Looking Information set
forth in these filings and any updates to such risk factors and
Special Note on Forward-Looking Information contained in subsequent
reports on Form 10-K, Form 10-Q or Form 8-K.
1 Dba Newmark Knight
Frank in California
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SOURCE Newmark Group, Inc.