Freddie Mac is coming to market with a $538 million CMBS deal backed by 19 multifamily properties owned by Apartment Investment & Management Co.

The offering, under its ‘K’ certificates program, is expected to price this week and settle on or about June 9.

David Brickman, national head of multifamily and CMBS capital markets for Freddie, noted that this is the first commercial transaction from the GSE where the security is collateralized by multiple loans made to a single commercial borrower.

“We expect to periodically issue these types of deals and others with loans from a single property and/or single borrower,” Brickman said. “It's the continuing evolution of ‘K’ deals, which includes loans on conventional, student, senior and targeted affordable multifamily properties.”

Bank of America Merrill Lynch and JPMorgan Securities are co-lead managers for the offering with Barclays Capital and Jeffries & Co. serving as co-managers.

In March 2010, Freddie Mac issued a single K Certificate bond backed by the Starrett City apartment complex in Brooklyn, N.Y.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.