— Relationship Formed to Serve ROCO’s Ongoing Financing Needs—
NEW YORK, Oct. 19, 2016 (GLOBE NEWSWIRE) -- Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it has arranged a Freddie Mac Multifamily revolving credit facility for ROCO, a privately-owned real estate investment firm located in Bloomfield Hills, Michigan.
“ROCO is a young company specializing in the development of much needed workforce housing in their local area,” noted Josh Messier, Director, Hunt Mortgage Group. “Access to this Freddie Mac revolving credit facility enables the firm to confidently grow through conventional multifamily acquisitions, knowing the funding they need is available.”
The Freddie Mac revolving credit facility provides a secure source of capital allowing borrowers like ROCO to pursue and win new business in a highly-competitive acquisitions market. The facility makes the borrower more nimble and able to move swiftly when an acquisition opportunity arises. It allows borrowers to use either a Freddie Mac capital markets’ execution loan, or a small balance loan, as an attractive takeout once the facility stabilizes.
The ROCO credit facility closed in February 2016 and is currently expanding by more than 50 percent. It is anticipated to double by year-end.
“Our structured credit facility with Hunt Mortgage Group and Freddie Mac provides us a strategic advantage as we continue to grow our portfolio in the current competitive environment,” noted Kevin Roach, Director of Debt Financing, ROCO Real Estate. “The standardization of the loan documents at the creation of the facility, coupled with the speed and flexibility of the underwriting process, allows us to close on acquisitions more quickly than with conventional loan products. The credit facility helps ROCO Real Estate position itself as a more attractive buyer than our competitors because we have the financing in place.”
“Working with Freddie Mac, we were able to structure a highly customizable credit facility with benefits such as flexibility of when and how capital is deployed, a streamlined underwriting process, standardized loan documents, interest-only payments and an extremely competitive interest rate,” added Messier. “These components were an ideal solution for ROCO’s business plan and we were extremely happy to deliver this unique execution.”
Having the funds committed up front through the facility, ROCO can easily execute their acquisition strategy. Hunt Mortgage Group continues to solidify its relationship with ROCO working together on each debt request. Overall, ROCO’s customer experience has been enhanced and their loyalty toward both Hunt Mortgage Group and Freddie Mac has strengthened.
“Freddie Mac proved to be a terrific capital partner on this transaction. They worked proactively with us every step of the way. Furthermore, Freddie Mac provided excellent marketing assistance in helping Hunt Mortgage Group educate our client on the benefits of such a structured transaction. This was the first Freddie Mac credit facility completed by our client,” added Bill Hyman, Senior Managing Director, Hunt Mortgage Group.
The Freddie Mac revolving credit facility offers an efficient, flexible and certain execution for active multifamily sponsors. It provides a secured line of credit from which borrower can move assets in and out of the facility at their discretion. The initial commitment of usually $100 million, or more, may be expanded or contracted at the borrower’s discretion. The facility term is five-years and may have up to two, one-year floating-rate extension options. Borrowers are existing Freddie Mac borrowers with a regional and/or national presence.
About Hunt Mortgage Group
Hunt Mortgage Group, a wholly owned subsidiary of Hunt Companies, Inc., is a leader in financing commercial real estate throughout the United States. The Company finances all types of commercial real estate: multifamily properties (including small balance), affordable housing, office, retail, manufactured housing, healthcare/senior living, hospitality, industrial, and self-storage facilities. It offers Fannie Mae, Freddie Mac, HUD/FHA in addition to its own Proprietary loan products. Since inception, the Company has structured more than $20 billion of loans and today maintains a servicing portfolio of more than $11.6 billion. Headquartered in New York City, Hunt Mortgage Group has 169 employees located in 19 locations throughout the United States. To learn more about Hunt Mortgage Group, visit www.huntmortgagegroup.com.
MEDIA CONTACTS Brent Feigenbaum Hunt Mortgage Group 212-317-5730 Brent.Feigenbaum@hun Pam Flores 773-218-9260 firstname.lastname@example.org
Source:Hunt Mortgage Group