GMAC Commercial Mortgage Corporation Utilizes Unique Structure to Quickly Arrange $24.7 Million in Refinancing for a Birmingham Apartment Community Through the Fannie Mae DUS Program

Business Wire, July 8, 2004

BIRMINGHAM, Ala. -- GMAC Commercial Mortgage Corporation (GMACCM) has arranged $24,700,000 in refinancing for a Birmingham multifamily property.

Sharpsburg Manor Apartments, located at 4816 Sharpsburg Circle, is a 507-unit apartment community with one, two and three bedroom units. The property was built in 1975 and has 715,815 net rentable square feet. The community is currently 94 percent occupied. Apartment ammenities include air conditioning, balcony, cable ready, dishwasher, fireplace, walk-in closets and washer /dryer connections. The property also features a clubhouse, swimming pool, tennis courts and laundry facilities.

Chad Thomas Hagwood, vice president - branch manager of the Birmingham, Ala., loan origination office financed the loan through the Fannie Mae DUS(TM) program for an affiliate of Arlington Properties. GMACCM utilized a MultiRateMortgage structure--the first MultiRateMortgage transaction executed through Fannie Mae.

Hagwood commented, "During the first two years of the loan, the rate adjusts monthly based at a spread over LIBOR with interest-only payments, which will provide maximum cash flow to the borrower. While the borrower was sensitive to cash flow in the early years of the loan, they also wanted to hedge themselves against future interest rate increases. GMACCM and Fannie Mae met both of the borrower's major goals by offering a two-year forward rate lock at a modest premium to current interest rates. Even though this was the first deal of its kind through a Fannie Mae DUS lender, GMACCM was still able to close the loan in less than 40 days from the time the application was executed by the borrower."

According to Kent J. Graeve, president of Arlington Properties, "When we first considered the possibility of refinancing our Sharpsburg Apartment community, we reviewed various proposals from different sources. As we looked at the merits of the different options, the proposal presented by GMACCM was the clear winner. Not only were the proposed loan terms very attractive, but in the final analysis, the structure became more appealing as GMACCM worked hard to deliver a loan that exceeded their original proposal as well as our expectations. Arlington Properties is very pleased with GMACCM's performance and every aspect of the service we received. We look forward to more opportunities to work with GMACCM."

GMAC Commercial Mortgage Corporation (GMACCM), a wholly-owned subsidiary of GMAC Commercial Holding Corp., is a premier financial services firm with extensive funding sources that, coupled with a broad menu of innovative financing programs, serve the needs of borrowers of commercial real estate debt as well as the providers of such capital. GMACCM is an industry leader in loan origination, servicing, asset management, investment management and technology services. The diverse lending and servicing specialist and its affiliates have more than 100 offices worldwide. GMACCM has a servicing portfolio of more than $241 billion and provides a variety of financing products and services including permanent, interim, mezzanine and construction lending as well as equity capital for commercial real estate. GMACCM has specialized lending units focused on healthcare, hospitality and franchise and asset backed lending.

News releases and other information about GMACCM, its products and services are available at www.gmaccm.com.

Property photo available upon request.

DUS is a trademark of Fannie Mae.