Bethesda, June 2, 2005

Deutsche Bank Berkshire Mortgage arranges $28.3 million Freddie Mac Bond


Innovative project financing used to preserve affordable housing in Arlington, VA metro area
Deutsche Bank Berkshire Mortgage (DBBM) recently provided a $28.3 million Freddie Mac Bond Credit Enhancement for the refinancing of Woodbury Park Apartments, a 364-unit garden-style, multifamily property within walking distance of the metro station in Arlington, Virginia.

DBBM utilized Freddie Mac's Bond Credit Enhancement program for this loan, which provided an exceptionally cost-efficient credit enhancement that allowed the bonds to be priced at a "AAA"-equivalent credit spread. Additionally, the tax-exempt bond credit enhancement fee included the cost of five years of fee maintenance while the taxable portion of the loan was also priced with five years of fee maintenance to allow for added flexibility for the borrower, AHC Inc., a nonprofit developer of affordable housing in Arlington, Virginia.

AHC entered into a five year interest rate swap with Freddie Mac for the tax-exempt bonds to simulate a fixed rate on these variable-rate bonds until the prior bonds are redeemed.  This allows AHC to take advantage of a favorable floating-rate bond environment while meeting the requirement for a fixed-rate execution utilizing the Freddie Mac SWAP structure.

Per the terms of the transaction, 40 percent of the units are required to be rented to tenants with incomes below 60 percent of area median income (AMI). Furthermore, AHC's agreement with Arlington County requires that the majority of the remaining units be rent and income restricted for 60 years to ensure affordability to low income residents. The balance of the units is rented at market rates.

DBBM's ability to refinance Woodbury Park Apartments in partnership with Freddie Mac allowed for the opportunity to preserve affordable housing in an area that is steadily increasing in both popularity and cost.

 


For further information, please call:

Puja Chugani                   
001 212-250-5602
Media Relations, Deutsche Bank

Ted Meyer                      
001 212-250-7253
Media Relations, Deutsche Bank

 


About Deutsche Bank Berkshire Mortgage

Deutsche Bank Berkshire Mortgage (DBBM), which is a part of Deutsche Bank's Global Commercial Real Estate group, specializes in financing for multifamily properties and provides a range of services, including Fannie Mae DUST, Freddie Mac Program Plus®, and FHA MAP and TAP Mortgage Insurance, with access to Deutsche Bank's industry-leading conduit and large loan products. DBBM services a portfolio in excess of $19.5 billion with more than 2,200 properties located in 48 states and the District of
Columbia.

DBBM includes Deutsche Bank Berkshire Mortgage, Inc., its origination and underwriting arm, and Deutsche Bank Mortgage Services, Inc., its servicing and asset management arm, which are both indirect, wholly owned subsidiaries of Deutsche Bank AG.  In North Dakota, Texas and Wisconsin, origination activities are conducted under the name DB Berkshire Mortgage, Inc., and in Texas and Wisconsin, servicing activities are conducted under the name DB Mortgage Services, Inc.

 

About Deutsche Bank

With Euro 901 billion in assets and 64,500 employees, Deutsche Bank offers unparalleled financial services in 74 countries throughout the world. Deutsche Bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.

Deutsche Bank ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, and has a significant private and business banking franchise in Germany and other selected countries in Continental Europe.

www.db.com




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