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How Big is Small Cap Multifamily?

A closer look at the multifamily housing inventory in the United States and the size of the small cap investment opportunity.

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Multifamily Forecast: Investors Moving to Secondary Markets

The apartment sector has remained the darling of the commercial real estate for the past six years. This doesn’t appear to be changing anytime soon, as 2016 is expected to set a new record for multifamily mortgage origination volume. While multifamily’s position as top dog remains uncontested, savvy investors are altering their strategy for sourcing Read the full article…

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Home | Freddie Mac | Green Advantage
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FREDDIE MAC®

Green Advantage

Freddie Mac Green Advantage suite of offerings rewards both borrowers who improve their properties to save energy – or who already have green-certified properties and are looking for new financing. Choose Green Up or Green Up Plus. When you commit to reduce energy or water consumption by at least 30% according to a Green Assessment or a Green Assessment Plus, you may get better pricing and more funding to make these enhancements. Green Advantage works with Freddie Mac Conventional, Targeted Affordable and Seniors Housing products.

Green Assessment
  • Quick, straight-forward property analysis to show borrowers how they can save energy and/or water by making property inprovements
  • Can be completed within two weeks without adding to processing time
  • Reimburse up to $4,000 of the cost of the report when the borrower closes a loan
Green Assessment Plus
  • Highly detailed property analysis based on an ASHRAE level 2 energy audit Reimburse up to $4,000 of the cost of the report when the borrower closes a loan
Minimum Projected Consumption Reduction
  • Green Up: 30% of energy or water/sewer consumption for the whole property, with a minimum of 15% from energy based on Green Assessment
  • Green Up Plus: 30% of energy or water/sewer consumption for the whole property, with a minimum of 15% from energy, based on Green Assessment Plus
  • Green Retro: 15% energy or water/sewer consumption savings at the Property. Must have been made to the Property within the current calendar year and the preceding two calendar years from the completion date of the Form 1209, Green Retrofits Certification.
Underwriting Approach
  • Green Up: Recognize 50% of projected owner-paid energy and/or water/sewer savings based on Green Assessment
  • Green Up Plus: Recognize 75% of projected owner-paid energy and/or water/sewer savings based on Green Assessment Plus
Minimum Green Improvement Budget $250 per unit.
Time to Complete Green Improvements 2 years to complete. Work must commence within 180 days of loan origination.
Escrow Requirements Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed.
Benchmark Requirements Property energy and water usage must be recorded in EPA Portfolio Manager before closing and annually until 2 years after project completion.
Required Third-Party Reports
  • Green Up: Green Assessment
  • Green Up Plus: Green Assessment Plus
Green Certified Discounted loan pricing for properties – with at least one affordable rental unit – that have one of these eight industry-standard green building certifications:

  • EarthCraft, Greater Atlanta Home Builders Association & South Face
  • ENERGY STAR for Multifamily, EPA
  • ENERGY STAR for Qualified Multifamily High-Rise, EPA
  • Green Communities, Enterprise Community Partners
  • Green Globes, Green Building Initiative
  • GreenPoint Rated, Build It Green
  • LEED, U.S. Green Building Council
  • National Green Building Standard (NGBS), Home Innovation Research Labs
Green Rebate For multifamily properties with greater than 20 units, a $5,000 rebate may be available for a borrower reporting an ENERGY STAR Score; rebate will be provided at settlement after all obligations and requirements are met; there is no minimum score required to receive the rebate.

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