Months after former Freddie Mac CEO David Brickman declared that he would lead a new company to shake up the multifamily sector, the lending platform has finally arrived.
The company, called NewPoint Real Estate Capital, is backed by mortgage brokerage Meridian Capital Group, investment manager Baring and private equity firm Stone Point Capital. The Commercial Observer first reported the news.
In January, Brickman ended a two-decade run at Freddie Mac, where he transformed its multifamily arm from something that resembled a sleepy company into a sophisticated finance operation, rising to CEO in 2019. His new company will seek to provide Fannie Mae, Freddie Mac and U.S. Department of Housing and Urban Development loans.
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NewPoint Real Estate is gearing up to launch a new securitization vehicle with the goal of providing higher leverage debt to multifamily projects.
“I think there’s an opportunity to rethink securitization for multifamily,” Brickman told the Commercial Observer.
The product will provide a larger first mortgage to developers, which could decrease their need for additional financing, such as preferred equity or mezzanine debt, which generally bear higher interest rates.
“Given the asset class and given its safety, we want to be able to figure out how to get to a little bit higher leverage,” Brickman said.
Barings, an investment management firm owned by Massachusetts Mutual Life Insurance Company, was looking for a way to boost its Freddie business. The company holds one of a select few licenses that allow lenders to originate loans for Freddie Mac.
[CO] — Keith Larsen