Lument Closes $123.6 Million Freddie Mac Refinancing for Abbey Residential's Four Multifamily Communities
Lument announced Nov. 10 the closing of four Freddie Mac Multifamily loans totaling $123.6 million to refinance four garden-style apartment communities in Texas and Alabama on behalf of Abbey Residential. The properties total 1,285 units. Chad Hagwood, senior managing director and southeast regional director at Lument, led the transactions.
Loan Structure and Terms
The four fixed-rate loans were structured with five-year terms and 35-year amortization schedules. Lument said the proceeds refinance existing debt and, where applicable, return capital to the sponsor following extended ownership and continued investment in the properties.
The transactions used a Freddie Mac Index Lock, which allows a borrower to lock the applicable index before final loan closing. Based on the aggregate figures, the financing averages roughly $96,186 per unit, or about $30.9 million per property across an average of approximately 321 units per community; actual property-level figures likely vary.
"Executing four loans simultaneously requires experience, coordination and close attention to every detail," said Hagwood. "Our team worked closely with Freddie Mac and Abbey Residential to deliver an ideal financing solution, utilizing an Index Lock that allowed us to lock at the opportune time, positioning these properties very well for the future."
Abbey Residential's Portfolio and Strategy
Abbey Residential is based in Birmingham, Alabama, and focuses on acquiring, developing, repositioning and operating apartment communities in the Southeast and Southwest. Founded in 1984, the company owns and operates more than 11,000 units across more than 30 communities in Texas, Alabama, Georgia and Florida. The four refinanced communities represent about 11.7% of that stated unit base.
Abbey Residential has maintained long-term ownership of the properties and completed renovations and capital improvements across the portfolio. Frank Barefield, owner and president of Abbey Residential, said, "Lument consistently does a great job of maximizing loan proceeds while keeping transaction costs under control."
Affordability Qualification Under Freddie Mac's Program
The financings also support Freddie Mac's mission-driven housing objectives, with approximately 99% or more of the units at each property qualifying under the program's affordability criteria.
Market Context for Multifamily Refinancing
The refinancing comes as multifamily fundamentals show early signs of improvement while borrowing conditions remain difficult. Lument's fall 2026 market report found national vacancy declined by 30 basis points in the second quarter, the first meaningful improvement in almost four years, while second-quarter rent growth reached 1.3% after a period of near-flat performance.
Higher interest rates continue to restrain transaction activity and valuation discovery. Lument reported that the Federal Reserve's recent rate increase and a 10-year Treasury yield above 5% were creating an additional obstacle for buyers and sellers trying to agree on pricing. In that environment, a five-year fixed-rate refinance can provide debt-service certainty while allowing an owner to retain assets rather than sell into a selectively priced market.
Supply conditions are also shifting. Lument's spring 2026 report said multifamily construction starts had fallen approximately 30% year over year, with declining starts expected to reduce future deliveries and support improving fundamentals into 2026-27. The firm characterized market performance as divergent, with some Sunbelt markets still absorbing elevated inventory even as construction activity declines. Austin was a notable positive exception in the fall report, with vacancy down 2.9 percentage points year over year.
About Lument
Lument, a subsidiary of ORIX Corporation USA, provides commercial real estate finance for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. The company offers Fannie Mae, Freddie Mac, FHA, USDA and balance sheet financing, as well as capital markets lending products and real estate advisory services. It has more than 550 employees in over 30 offices across the United States. Lument's press-release archive also lists a separate $27.3 million refinance of Texas communities.