ACRE Closes $424M Freddie Mac ‘Q-Series’ Transaction
November 08 2022 - 1:00PM
Business Wire
Securitization of 11 multifamily bridge
loans from lending platform ‘ACRE Credit I’ mark global PE firm’s
first partnership with federal GSE
ACRE, a global real estate private equity firm, today announced
it has finalized a $424 million securitization of 11 multifamily
mortgage loans through Freddie Mac’s Q securitization program.
Issued through ACRE’s debt fund ‘ACRE Credit I’, the floating
rate, first mortgage bridge loans were secured by 11 transitional
multifamily properties across Georgia, Texas, Colorado, North
Carolina, and Arizona.
The Q program carries huge economic advantages for issuers, as
CLO pricing has widened significantly this year. The guaranteed
tranche of ACRE’s deal (Q18) sold at 87bps over SOFR. The AAA
tranches of the CRE CLO market are currently around 275bps over
SOFR. With Freddie Mac’s guarantee fee of ~98bps on the A-bond, the
WACC on a Q deal is about half the cost of a CRE CLO. The
securitization was led by JP Morgan and Barclays, with JLL Capital
Markets’ Peter Rotchford, Jesse Wright, Gerard Sansosti, and
Christopher Peck serving as advisors and sub-servicers for the
deal.
“We were able to be nimble in an uncertain market and take
advantage of our long-standing relationship with Freddie Mac to
print a much more accretive securitization at half the cost,” said
Daniel Jacobs, Managing Partner at ACRE. “We’re extremely grateful
to both our partners, Freddie Mac and JLL, for their assistance in
this transformative deal, and we look forward to working with both
to continue to identify and execute new strategies to provide
meaningful returns for our investors.”
The securitization represents ACRE’s first-ever ‘Q-Series’
transaction with Freddie Mac, and the latest milestone in the
growth of ‘ACRE Credit I’.
Since its launch, the platform has raised $509 million of equity
and has closed and committed to providing more than $2 billion in
loans across 52 transactions to support the acquisition, lease-up,
redevelopment, and recapitalization of multifamily assets in
growing secondary markets across the U.S. such as Miami and
Orlando, Florida; Durham, North Carolina; Cincinnati, Ohio;
Charleston, South Carolina; and Dallas, Texas.
“The speed at which the market adjusted during late spring and
early summer caught many by surprise. Helping ACRE find an
alternative solution for their portfolio financing has allowed them
to free up capacity and continue to originate,” Rotchford and
Wright said.
ACRE’s expanding lending platform has also aided the firm in
landing a growing list of institutional partners. Earlier this
year, it announced a $300 million commitment from StepStone Group,
a global private markets investment firm and one of the world’s
largest institutional consultancies. Other high-profile global
investors that have made significant commitments to ACRE’s suite of
investment platforms include Hamilton Lane, OPTrust and Almanac
Realty Investors, the private real estate investment arm of
Neuberger Berman.
About ACRE
ACRE is a vertically integrated private equity firm specializing
in commercial real estate through active investments in both direct
equity and debt capital markets as well as special situation
opportunities. ACRE manages a global portfolio in excess of $3.1
billion concentrated in U.S. multifamily with holdings in the
United Kingdom and Southeast Asia through separate verticals. ACRE
has offices in Atlanta, New York, and Singapore.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that
specializes in real estate and investment management. JLL shapes
the future of real estate for a better world by using the most
advanced technology to create rewarding opportunities, amazing
spaces and sustainable real estate solutions for our clients, our
people and our communities. JLL is a Fortune 500 company with
annual revenue of $19.4 billion in 2021, operations in over 80
countries and a global workforce more than 102,000 as of June 30,
2022. JLL is the brand name, and a registered trademark, of Jones
Lang LaSalle Incorporated. For further information, visit
jll.com.
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Media: Dan Ivers Antenna | Spaces (646) 265-9670
dan.ivers@antennagroup.com
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