GMAC Commercial Mortgage Corp. and Freddie Mac are turning seniors housing and assisted-living facilities into a fast-growing asset niche.

After a $55 million securitization in April, the two companies paired up once again for an $88 million commercial mortgage securitization - Freddie Mac's largest in this sector so far, GMAC said last week.

The deal features a cross collateralization and cross defaulting of eight mortgages in New Jersey, Pennsylvania and Virginia. These mortgages represent 660 units. The loans have a 10-year term and 25-year amortization.

A source familiar with the deal said the loans have prepayment penalties, and the resulting securitization has well defined maturities. According to a GMAC official, investors in these types of securitizations include insurance companies, pension funds and some banks.

Freddie Mac has been buying seniors and assisted-living loans for some time, but has frequently put them into its portfolio.

However, Horsham, Pa.-based GMAC is said to have currently found better execution taking the securitization option. - ES

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