Federated Uses $26.5 Million Loan From Life Insurer to Refinance Property Debt

By John Jordan

News August 31, 2018 at 03:24 AM

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Real estate is a kissing cousin of the life insurance and annuity sectors. Life insurers invest some of their general account cash in real estate, mortgages and mortgage-backed securities. Customers use the income from permanent life and annuity products to pay for housing.

Here's the fifth of five GlobeSt.com articles about intersections between your universe and the real estate universe that we've run this week. It gives you a peek at the kinds of real estate-related assets the carriers are putting in their portfolios now.

The Federated Companies has used a $26.5 million loan from an unnamed life insurer to refinance debt related to a portfolio of six industrial properties in Florida.

The properties have a total of 600,000 square feet of floor space and are 100% leased, according to Federated.

The loan Federated used to refinance the properties was a 10-year, fixed-rate loan.

Holliday Fenoglio Fowler, L.P. represented Federated, and it arranged for the refinancing. The Holliday Fenoglio team for the transaction included Scott Wadler and Celine Comeau.

In 2016, U.S. insurers had invested about 10% of their general account assets in commercial mortgage loans, according to the American Council of Life Insurers.

— Read Prudential's Real Estate Finance Arm Describes Its Lending Targets, on ThinkAdvisor.

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