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Debt & Equity

Emerald Equity Group refinances Bronx portfolio with record $129M Freddie Mac loan

Emerald Equity Group has refinanced an 850-unit Bronx portfolio with $129 million in Freddie Mac loans.

Sabal Capital Partners, a financial services firm, announced the closing of the Freddie Mac Small Balance Loans this morning (Wednesday).

The deal for Emerald Equity Group  is the largest single Small Balance Loan (SBL) transaction processed through the Freddie Mac SBL program since its inception in 2014.

“Completed on time within an aggressive schedule, this closing is an enormous accomplishment for Sabal in one of the most competitive markets in the world,” said Pat Jackson, chairman and CEO of Sabal Capital Partners, LLC.

“We co-ordinated a marathon two days of individual loan closings, an outstanding test of Sabal’s resources given the strong pipeline of other loan fundings that were happening concurrently.”

Rather than a bulk transaction, each of the 34 refinance loans in the portfolio were independently analyzed, underwritten and closed. This process included site inspections conducted with five third parties, appraisals and environmental reports, review with the Freddie Mac credit division and commitment letters as well as legal review, title analysis and loan documents for each property. All of this was enabled through SNAP, the company’s proprietary servicing portal.

“The upgrade and rehabilitation of the properties in this portfolio, which are comprised of nearly 100 percent workforce housing, will provide families with a nice and affordable place to call home in an area with an extremely high cost of living,” said Isaac Kassirer, President at Emerald Equity Group.

“We are extremely grateful and impressed with how efficient and seamless this monumental refinancing process has been with the teams at Sabal and Freddie Mac at the helm.”

With the loan deal has allowed Emerald to complete the acquisition and turnaround strategy for it affordable housing investment thesis within a period of two years, according to a press release issued by Sabal Capital.

In August, Emerald purchased a 100-unit East Harlem portfolio for $15. 8 million from Castellan, according to the Commercial Observer., along with another  $9 million purchase of the 34-unit  1661 Park Avenue. Last year, the company purchased a 1,200-unit portfolio of workforce housing for $358 million from Fairstead Capital and E&M Associates. It sold a six-building $38 million multifamily portfolio in the Bronx in May.

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