Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the sale of and secured financing for a 31-property, Low Income Housing Tax Credit (LIHTC) portfolio totaling 8,498 units in various Florida locations.

HFF marketed the portfolio exclusively on behalf of The Wilson Company. Starwood Property Trust, an affiliate of Starwood Capital Group (Starwood), purchased the offering for $563.5 million. Additionally, HFF worked on behalf of the new owner to secure financing totaling $255.87 million through Freddie Mac’s (Federal Home Loan Mortgage Corporation) CME Program on 19 of the assets. The securitized loans will be serviced by HFF through its Freddie Mac Program Plus® Seller/Servicer program.

Heavily concentrated in Orlando and Tampa, the portfolio was developed between 1995 and 2004 under Section 42 of the Internal Revenue Code. Under this code, developers receive LIHTC to offset development costs. In return, LIHTC properties are encumbered with long-term rent and income restrictions. On average, maximum allowable rents across the portfolio are approximately $350 below prevailing rents at nearby market-rate communities. Tremendous demand for affordable housing across the portfolio contributed to an average portfolio occupancy exceeding 97 percent at the time of sale.

The HFF investment sales team was led by managing director Doug Childers along with senior managing director Jason Nettles and managing director Matt Mitchell.

HFF’s debt placement team was led by managing director Gregg Shapiro and executive managing director Jody Thornton.

“This transaction represents the beginning of a new era for LIHTC investment sales,” Childers said. “Traditionally, LIHTC transactions have attracted primarily private, regional capital providers. HFF’s affordable housing experts were able to educate institutional investors regarding the portfolio’s relatively low cash-flow volatility and the regulatory and operational nuances associated with LIHTC communities. As a result, we were able to create a competitive bidding process that included large, institutional investors.”

“Starwood emerged from the field by proposing an expedited closing process and demonstrating a thorough understanding of the opportunity,” added Nettles. “They performed flawlessly as though they had been investing in the LIHTC space for years.”

“In addition to The Wilson Company and Starwood’s performance throughout this process, Freddie Mac clearly demonstrated its commitment to affordable housing through its creativity and collaboration in order to provide attractive financing that supported Starwood’s acquisition of this portfolio,” said Shapiro. “The financing put the borrower in a position to not only achieve their targeted returns on its investment but also to continue to invest in these communities and ensure that they provide high-quality affordable housing long-term.”

“I became president of The Wilson Company in 2003,” said Carolyn Wilson, president of The Wilson Company. “It has been a rocky road for The Wilson Company employees, my family and me. My husband, Jack Wilson, would have been proud of what we have accomplished here. The sale of the portfolio is the culmination of ‘The House that Jack Built’.”

“Our thanks to HFF, who provided and engineered this opportunity, and to the talented Wilson Company team that managed and participated in this amazing transaction,” continued Wilson. “The Wilson Company continues in property management, managing the Franklin Exchange Building in downtown Tampa, which serves as the company’s headquarters, along with other commercial properties.”

About The Wilson Company

The Wilson Company, founded by Jack Wilson, offers a full range of property management and development services and is recognized as a successful builder and management company of Affordable Housing communities throughout Florida. In December 2005, Jack Wilson passed away, leaving behind a solid company of dedicated professionals who continue his legacy and vision under the leadership of Carolyn Wilson, President of The Wilson Company.

About Starwood Property Trust

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is the largest commercial mortgage real estate investment trust in the United States. The company’s core business focuses on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt and equity investments. Through its subsidiaries LNR Property, LLC and Hatfield Philips International, Starwood Property Trust also operates as the largest commercial mortgage special servicer in the United States and one of the largest primary and special servicers in Europe. With total capital deployed since inception of approximately $27 billion, Starwood Property Trust continues to solidify its position as one of the premier real estate finance companies in the country.

About Freddie Mac

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports homeowners and renters nationwide by providing mortgage capital to lenders. Today Freddie Mac is making home possible for approximately one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at freddiemac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

About HFF

HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.