Harbor Group International, LLC, a privately owned international real estate investment and management firm, today announced that it has completed the $153 million securitization of eight multifamily mortgage loans through Freddie Mac’s Q Series Securitization program. The mortgages are secured by nine multifamily properties across the United States.
“Freddie Mac plays a vital role in contributing to the accessibility of multifamily housing and increasing liquidity in the market, and we are pleased to continue our work together through their Q program,” said Richard Litton, President, HGI. “This securitization is a strong complement to HGI’s growing debt portfolio as we seek to provide diversification to our investors.”
The loans in the pool, which were underwritten between April 2022 and October 2022, were originated by the HGI Multifamily Credit Fund and are all SOFR indexed. The assets are geographically diverse, located in California, Arizona, Texas, Virginia, Georgia, South Carolina, Kentucky and Alabama. Goldman Sachs led the securitization.
The transaction adds to HGI’s work with Freddie Mac as a borrower, preferred equity partner and B-piece investor. Litton added, “HGI is a leading investor in the Freddie Mac K Series program and actively supports energy efficiency and affordable housing initiatives through investing in green and workforce bonds under Freddie Mac’s Social Impact programs. In addition, the HGI-originated loans contributed to the Q Series program securitization had approximately 87% of their units designated as affordable at or below 60% of Area Median Income.”
Freddie Mac Q Certificates are structured pass-through securities backed by multifamily mortgage loans.
“Freddie Mac is highly selective and heavily focused on affordability and credit discipline in its Q Series Securitization program,” said Leena Amin, Director of Structure Transactions for Freddie Mac Multifamily. “Through this execution with HGI, we are providing liquidity for multifamily housing that is affordable to low-income tenants.”
About Harbor Group International
Harbor Group International, LLC, and its affiliates control an investment portfolio of approximately $19 billion including 5.0 million square feet of commercial space throughout the United States and the United Kingdom and 57,000 apartment units in the United States. In addition to its corporate headquarters in Norfolk, Virginia, HGI maintains offices in New York, Baltimore, Los Angeles, and Tel Aviv.