Fannie Debt Assumptions on the Rise
As competition for the Class-B and -C assets continues to grow (with more capital than product available), there may also be more Fannie debt assumptions on the rise. Marcus & Millichap national multihousing group associate director Michael Ware tells us he just closed an assumption deal with the Class-B 280-unit Wind Tree Apartments (at 3300 Esters Rd in Irving) with Marcus & Millichap national multihousing group director Will Jarnigan. (That's Will in the middle, Michael on the right, with Benchmark Bank’s Trey Adams on the left at the famous Neptune’s Seafood in Boston).
The duo repped both the out-of-state seller and buyer. Fannie debt was assumed through C3, and Benchmark Title of Dallas handled the escrow. The property had more than 20 tours even with the assumption basis. Michael says it's the second large Class-B assumption deal the duo has recently closed and he anticipates seeing more since so many people have refinanced or purchased with Fannie debt. They also have four deals under contract, with four deals they’re chasing, and one deal the duo is activating next week. That’s good, he says, because daddy needs deals. He has an 8-month-old daughter and just confirmed that baby No 2 on the way! Will is headed to Hawaii in July to dodge Tiger sharks, climb volcanoes, and get sunburned. Must be nice to be a bachelor.