Hamilton Zanze and Limekiln Partner for Strategic Investment in Freddie Mac B-Piece Securities

Hamilton Zanze's Strategic Partnership with Limekiln Real Estate

Hamilton Zanze, a well-established real estate investment firm headquartered in San Francisco, has officially entered into a strategic alliance with Limekiln Real Estate. This partnership marks a significant step forward as they jointly acquired several new-issue securities linked to the Freddie Mac K-165 transaction.

The collaboration culminated in the closure of an acquisition on November 7, where they successfully purchased Class D, X2A, and X2B subordinate securities collectively known as the "B piece." This acquisition has a substantial face value of approximately $63 million, all part of a larger $1.27 billion, ten-year commercial mortgage-backed securities (CMBS) transaction involving multiple borrowers. Notably, the underpinning of the offering is fortified by 49 fixed-rate multifamily mortgage loans, presenting a solid foundation for their investment.

Peter Casey, the Managing Director of Capital Markets at Hamilton Zanze, expressed excitement over this venture, noting, "Hamilton Zanze is very excited to have had an opportunity to participate in the Freddie Mac B piece program." He elaborated on the firm’s meticulous evaluation of opportunities over the past decade, ensuring they acted at the most opportune moment alongside the right partners to engage in the competitive K-165 offering. This strategic involvement not only underscores their commitment as a Freddie Mac borrower for over 15 years but also reflects their dedication to supporting Freddie Mac's overarching housing objectives.

Freddie Mac's K-Series, recognized as a trademarked offering exclusively associated with the organization, falls under the umbrella of mortgage-backed securities (MBS). This framework marks a prestigious category within the real estate sector, allowing for a diverse array of financial engagements that benefit both investors and the broader housing market.

Background on Hamilton Zanze

Founded in 2001, Hamilton Zanze has firmly positioned itself as a leading player in the multifamily real estate investment landscape, having sponsored the acquisition of over $7.5 billion in assets across the Western, Southwestern, and Eastern United States. Their impressive portfolio currently comprises 123 properties, meaning 21,777 units distributed across 28 markets. The company prides itself on adhering to the highest standards of investment, which has been instrumental in obtaining robust returns while contributing to housing development initiatives across the country.

Insights into Limekiln Real Estate

On the other hand, Limekiln Real Estate specializes in multifamily-focused real estate finance, guided by a team of experienced professionals skilled in various market cycles. Their strategic objectives include originating multifamily bridge loans and investing in high-yield bonds secured by multifamily mortgages. This depth of experience equips Limekiln to adeptly execute in select commercial real estate special situations, further amplifying their role in the current acquisition.

This groundbreaking partnership between Hamilton Zanze and Limekiln Real Estate presents a meaningful collaboration in the dynamics of real estate investment. Their concerted efforts stand as a testament to the evolving landscape of multifamily financing, demonstrating an astute understanding of market opportunities and a shared commitment to enhancing housing outcomes across diverse urban areas.