New York Times (08/13/08) P. C5; Pristin, Terry
The credit markets stalled not long after 2007's $22.2 billion acquisition of apartment giant Archstone-Smith by a joint venture of Tishman Speyer and Lehman Brothers, and the purchase closed only because Fannie Mae and Freddie Mac stepped forward to provide $8.9 billion of the financing. Although financing for multifamily housing represents just a small slice of the two government-sponsored enterprises' business, BMO Capital Markets analyst Richard Anderson calls it "a rare bright spot for both of them." Consequently, both Fannie Mae and Freddie Mac are rapidly increasing their multifamily portfolios and, in turn, are helping to make rental apartments the strongest of the publicly traded property sectors by providing liquidity that is no longer available via commercial mortgage-backed securities. During the first seven months of this year, the National Association of Real Estate Investment Trusts reports that total returns for multifamily REITs increased 16.74 percent, due largely to what Anderson reports is "their capital-raising advantage."
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