Magna Bank is one of nine lenders across the country selected to participate in Freddie Mac’s Small Balance Loan program for apartments.
The loan program aids in the financing of $1 million to $5 million multifamily loans and is designed to support affordable rental housing. The program also targets the underserved, small rental property borrowers, giving them access to long-term debt capital.
“This is a niche market and one in which Memphis has a great need for available capital,” Alex Yates, Magna’s vice president of commercial and multifamily real estate lending, said in a prepared statement.
“This market has a good deal of potential. We have a very active market Downtown and in Midtown for higher end and mid-priced apartment developments of this kind, and we have an active market for affordable housing across the community,” Yates said. “This program will create better and more flexible lending options for recently stabilized investment opportunities, or those looking to purchase or refinance properties.”
Magna is the only local bank chosen for the program.