Freddie Mac wants a receiver to take over a 252-unit Seattle apartment complex, claiming the borrower owes nearly $7 million and can no longer keep the property running.
The government-sponsored enterprise filed its case on January 16 in the Western District of Washington, targeting GRE Downtowner LLC, the limited liability company that owns the Downtowner Apartments in downtown Seattle. The move offers a window into how one of the nation’s secondary mortgage market giants handles multifamily loans gone south.
At the heart of the dispute is a reimbursement agreement dating back to June 2012. That year, the Washington State Housing Finance Commission issued $24 million in multifamily housing revenue bonds to finance the property. East West Bank originated the mortgage loan, with a maturity date of July 2030. Freddie Mac stepped in with a credit enhancement agreement to backstop certain bond payments, and in return, the borrower promised to reimburse Freddie Mac for any amounts it had to cover…