Real estate firm invests in Freddie Mac’s green mortgage bond

Harbor Group International (HGI), a real estate investment and management firm, has invested in one of Freddie Mac’s green mortgage bonds.

The privately held company has announced an investment in the Freddie Mac FREMF 2021 KG05 bond pool (KG05), which is part of GSE’s environmental and social impact KG deal offering.

According to a press release, the investment includes underlying home mortgage loans for workers with rents affordable to the majority of low-to-middle-income households. Borrowers within the KG05 pool must significantly reduce their energy or water and wastewater consumption and report data on water performance and energy efficiency via a qualified third-party benchmarking advisor.

Additionally, these properties must adhere to Freddie Mac’s Green Advantage Loan Program guidelines, which offer adjusted interest rates to borrowers seeking to improve the water and energy efficiency of their shared apartments. The program also aims to reduce the carbon footprint of older residential communities while lowering utility costs for low-income residents.

“Harbor Group International has long understood the importance of sustainable investment strategies and how to assess the social and environmental impact of our investments,” said Richard Litton, President of HGI. “We are pleased to offer our investors environmentally friendly investment opportunities through our continued relationship with Freddie Mac in light of the growing demand for ESG investment options.”