The transaction finances about $350 million of Hunt Mortgage-originated floating rate bridge loans
Hunt Mortgage Group has entered the commercial real estate loan securitization space with its first transaction.
The commercial real estate financing company announced that it closed Hunt CRE 2017-FL1, its first commercial real estate collateralized loan obligation, on Aug. 15.
"This is a major milestone for Hunt Mortgage Group as it provides the company with a predictable and stable source of long-term non-recourse balance sheet financing which will serve to supplement our existing warehouse lines," said James Flynn, president and chief investment officer at the company.
With the transaction, Hunt Mortgage will be able to finance about $350 million of floating rate bridge loans that it originated. Hung Mortgage sold investment-grade notes with an approximate value of $291 million to 15 institutional investors. The company retained the first loss non-investment grade piece of just below 17%.
The transaction features a replenishment period for primarily multifamily assets. With this provision, Hunt Investment Management, the asset manager for the transaction, is able to use qualifying Hunt Mortgage loans as replacement collateral whenever existing deals mature or are paid off.
Mike Becktel, a managing director with the company and head of its proprietary lending business, led internal effort behind the securitization.
"We were very pleased with the execution, and believe the levels achieved are a clear reflection of the strength of the collateral as well as the overall platform," Becktel said.
Related stories:
Fannie, Freddie continue efforts to reduce mortgage portfolio
Flagstar closes first RMBS securitization
The commercial real estate financing company announced that it closed Hunt CRE 2017-FL1, its first commercial real estate collateralized loan obligation, on Aug. 15.
"This is a major milestone for Hunt Mortgage Group as it provides the company with a predictable and stable source of long-term non-recourse balance sheet financing which will serve to supplement our existing warehouse lines," said James Flynn, president and chief investment officer at the company.
With the transaction, Hunt Mortgage will be able to finance about $350 million of floating rate bridge loans that it originated. Hung Mortgage sold investment-grade notes with an approximate value of $291 million to 15 institutional investors. The company retained the first loss non-investment grade piece of just below 17%.
The transaction features a replenishment period for primarily multifamily assets. With this provision, Hunt Investment Management, the asset manager for the transaction, is able to use qualifying Hunt Mortgage loans as replacement collateral whenever existing deals mature or are paid off.
Mike Becktel, a managing director with the company and head of its proprietary lending business, led internal effort behind the securitization.
"We were very pleased with the execution, and believe the levels achieved are a clear reflection of the strength of the collateral as well as the overall platform," Becktel said.
Related stories:
Fannie, Freddie continue efforts to reduce mortgage portfolio
Flagstar closes first RMBS securitization
