Roscoe Village Freddie Mac Refinance Closes Seamlessly: Essex Capital Markets Secures Liquidity and Flexibility for Sponsors

Problem: The sponsors were facing a potential cash-in refinance scenario due to tight cash flow at the property, which limited refinance proceeds and created risk around meeting Freddie Mac’s minimum debt service requirements.

Solution: Through precise timing, strong lender coordination, and strategic execution under Freddie Mac’s Small Balance program, Essex Capital Markets structured a non-recourse refinance that avoided the cash-in scenario entirely. In parallel, the team navigated Freddie’s increasingly strict insurance compliance standards, guiding the sponsors through multiple supplemental coverage options to ensure full approval without delay.

Outcome: The deal closed seamlessly within the rate-lock window, allowing the sponsors to pull out capital, reduce financing costs, and maintain long-term flexibility with two years of interest-only payments on a 5-year fixed loan.