Indigo at 12 West Case Study in SARM Execution

This document is a case study that details the execution of a Structured Adjustable-Rate Mortgage (SARM) for the Indigo at 12 West property in Portland, Oregon. The property is a Class A, 23-story mixed-use tower featuring retail, office, and multifamily spaces. The case study outlines how PGIM, a DUS lender, tailored a SARM loan to meet the specific needs of the borrower in the current market. The financing structure provided by Fannie Mae highlights the flexibility and creative financing options available through SARM, including variable-rate flexibility and the option to convert to fixed rates. The document emphasizes the advantages of SARM, such as competitive interest rates, lower transaction costs for conversion, and borrower-friendly prepayment options. Additionally, it mentions the sustainability features of the property, including LEED Platinum certification and various green initiatives. Overall, the case study serves to illustrate the successful partnership between PGIM and Fannie Mae in delivering effective financing solutions.