HORSHAM, Pa.--(BUSINESS WIRE via COLLEGIATE PRESSWIRE)--Aug 27, 2001--GMAC Commercial Mortgage Company (GMACCM) announced today that it has been selected by Fannie Mae as one of the first lenders to participate in The Dedicated Student Housing Pilot, launched this summer.
This adds an additional important permanent loan source to GMACCM`s already substantial array of debt, equity and bond resources available for Student Housing.
``We are very pleased to be chosen as one of a few select lenders approved for this pilot project,`` said Jim Rowan, Senior Vice President of GMACCM`s Agency lending Group. Rowan also noted that GMACCM is the largest national lender approved as a Fannie Mae lender and will bring its` substantial nationwide Production network to the pilot initiative.
The new Dedicated Student Housing Pilot launched by Fannie Mae (NYSE:FNM), the nation`s largest source of financing for home mortgages and multifamily housing, will provide student housing developers, owners and operators nationwide with more attractive loan options.
The student housing market has been in need of more funding opportunities for on and off campus student housing since the early 1990s when trends in privatization began in some markets. Currently, the Student Housing market is rapidly expanding, driven by the children of the postwar ``baby boomers``, now heading for college.
Ed Andrew, Vice President and coordinator of GMACCM`s Student Housing initiative said ``We believe our strong knowledge and long experience in the student housing market, as well as our valued relationship with Fannie Mae, will enable us to bring to this pilot a very high level of service and expertise.``
Under the pilot, Fannie Mae has adopted new standards for considering the purchase of loans secured by properties that provide dedicated student housing. Initial pilot loans must be secured by dedicated off-campus, performing and stabilized student housing properties with undergraduate or graduate students comprising at least 80 percent of their tenant base.
Properties must have been specifically constructed as a student property or built as a conventional multifamily asset and function as dedicated student housing.
Currently, the Dedicated Student Housing Pilot is approved only for permanent mortgage loans. Fannie Mae said it hopes to expand this to include other Fannie Mae products, including forward commitments and tax-exempt bond credit enhancements.
``As a participant in the pilot, GMACCM`s National Production Network can now offer Fannie Mae permanent loans plus a coordinated array of services, including bond underwriting, construction financing, interim floating rate loans, mezzanine financing, equity and permanent debt from conduit or life company sources for properties that may not currently qualify for this new Fannie Mae product,`` said Andrew.
``GMACCM expects to handle a minimum of $150 million in permanent loans and interim floater loans for dedicated student housing and $100 million in student housing construction by year-end. We expect a significant portion of this permanent loan business to meet Fannie Mae`s underwriting criteria. We already have established relationships with some of the major student housing players, and we`re actively seeking qualified student housing properties to introduce into the pilot, including on campus 501C3 opportunities.``
During the past two years, GMACCM has placed student housing transactions totaling over $380 million in major school/university markets throughout the U.S. Transactions range in size from $2 million to $42 million involving properties with up to 500 units and over 1500 bedrooms.
At present, GMACCM is providing over $19 million in construction financing on dedicated student housing and is considering other student housing construction financing requests around the country. In addition, GMACCM`s Newman & Associates subsidiary has been associated with over $43 million of bond financings for student housing properties.
Currently, Newman is considering bond underwriting and credit enhancement for several taxable and tax-exempt 501C3 student housing bond transactions.
GMAC Commercial Mortgage, a wholly owned subsidiary of GMAC Commercial Holding Corp, is the leading U.S. financial solutions provider servicing commercial real estate borrowers and investors seeking relationship-based advice and consultation. GMACCM is an industry leader in loan origination, servicing, asset management and securitization of commercial mortgages.
The diverse lending and servicing specialist has more than 60 offices in the U.S. GMACCM has a servicing portfolio exceeding $110 billion, and provides a variety of financing products and services including permanent, interim, and construction lending, with specialized lending units focused on healthcare and hospitality as well as e-commerce offerings through Internet commercial mortgage lending.
Inquiries or requests related to student housing or the Fannie Mae Student Housing Pilot may be directed to GMACCM production offices or to Ed Andrew at 215/328-1177/e-mail: [email protected].
Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation`s largest source of financing for home mortgages.
Fannie Mae is working to shrink the nation`s ``homeownership gaps`` through a $2 trillion ``American Dream Commitment`` to increase homeownership rates and serve 18 million targeted American families by the end of the decade.
Since 1968, Fannie Mae has provided more than $3.0 trillion of mortgage financing for 38 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.
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