Fannie Mae closes 500th green multifamily financing deal of 2017
Fannie Mae has closed its 500th green financing transaction of 2017, a portfolio of 10 multifamily properties, demonstrating the broad market adoption of Fannie Mae's green finance program.
The transaction is a significant milestone for the Fannie Mae Green Financing business that provides social, environmental and financial benefits to the market, officials said in a release. As of the second quarter of 2017, since its inception, Fannie Mae's Green Financing business is projected to save enough energy to power 31 million cell phones and save the equivalent of 15.6 billion glasses of water annually.
Fannie Mae green loans are secured by multifamily properties that either are targeting a 20 percent or greater in energy or water consumption or have been awarded a green building certification, such as LEED or ENERGY STAR. Fannie Mae introduced its green financing products to the market in 2012 and securitizes the loans as Green MBS. Fannie Mae has grown its green financing book business each year, culminating in the issuance of more than $10 billion in the first half of 2017.
The portfolio of 10 multifamily properties is owned by Goldrich Kest of Culver City, Calif. The $179.6 million portfolio consists of 1,252 units throughout California, including San Jose, San Francisco, Oakland, Los Angeles, Orange County and San Diego. The average age of the properties in the portfolio is 44 years.
The Fannie Mae Multifamily Green upgrades are projected to save the Goldrich Kest portfolio a total of 16.6 million gallons of water and 9.2 million kBTU annually, and include investing in energy-efficient lighting systems, replacing refrigerators with ENERGY STAR-rated refrigerators, and installing low-flow faucets, showerheads and toilets. In addition to the positive environmental impact the upgrades provide, tenants will benefit from increased affordability, saving an average of $95 each year on their utility bills.
On average, each property is projected to reduce its utility expense by more than $26,000 a year.
Fannie Mae Multifamily relies on its Delegated Underwriting and Servicing (DUS) program to finance rental housing. The DUS lender for the Goldrich Kest portfolio is Walker & Dunlop of Bethesda, Maryland.